Many Elderly Homeowners Could Save Their Home With A Reverse Mortgage
In today’s depressed real estate market, reverse mortgages are helping people who are struggling to meet payments on high-interest-rate loans and keep their homes. The strategy is quickly gaining popularity among legal-aid attorneys and housing advocates around the country and calls for persuading lenders to take the cash generated by a reverse mortgage in lieu of foreclosing on older homeowners.
With a reverse mortgage, the bank makes payments to the homeowner instead of the homeowner making payments to a bank. The loan is repaid, with interest, when the borrower sells the house, moves out permanently or dies. It may be the best option for people who have built up equity in their home and would otherwise lose it.