Reverse Mortgages

October 21, 2009 by  
Filed under Blog, Reverse Mortgages

What is a reverse mortgage?

A reverse mortgage is a mortgage for senior citizens, which allows them to stay in the property until it is sold or the owner dies.  They mortgage amount is deferred until this time.  This is generally the move that many people who retire and don’t have sufficient funds make.

If reverse mortgages are conducted correctly they can be a great option for retirees, but many times retirees are finding themselves a a bad situation.  John Dugan who is the comptroller of the currency states, “While reverse mortgages can provide real benefit, they also have some of the characteristics as the riskiest types of subprime mortgages –  and that should set off alarm bells.”  These reverse mortgages are putting older peoples equity at risk.  It is clear that the oversight of these mortgages or lack thereof is putting many people at risk.  There are several flaws in the system that need to be patched up immediately.  We need to start acting with a sense of urgency, and not let reverse mortgages be the next subprimes.

Housing Assist Coldwellbanker