What is a “reverse mortgage” and is it an appropriate option in a foreclosure case?
Another new trend that has developed is the use of Reverse Mortgages, sometimes referred to as Home Equity Conversion Mortgages (HECM). Some Mortgage Brokers are preying on the elderly by showing up at their homes and offering to do Reverse Mortgages to save their homes from foreclosure. This type of loan is available for homeowners that are 62 years of age or older and does not have to be paid back until the borrower dies, sells their home, or permanently moves out of the home. For some, this is a good option, but for many others, it is not. There are many costs associated with these loans. If you are considering this type of loan, you should contact a HUD-Approved Counseling Agency. A list is available at www.hud.gov or by calling 1-800-CALL FHA. Also, more information is available at www.aarp.org.
