Reverse Mortgage Ads May Sidestep Potential Pitfalls

[Ruby the Liberal]

3. They aren't suitable for most people over 65

Despite what the hucksters like Fred Thompson and The Fonz want people to think in their TV commercials.

Anyone considering this needs to be very careful about the lender they choose. Someone in their 90s+ who is capable of remaining in their home (but has medical expenses such as assisted living help or in home nursing care) *could* benefit, but only if it is structured correctly. The first question I would ask is if the lender is willing to escrow the taxes and insurance out of the monthly payment and take responsibility for making those payments. This is an area that a lot of older folks get tripped up on, and losing your home to a county sheriff tax lien is a horrifying experience.