Sunday, January 31, 2016

Horrified

Someone explained to my husband that they had gotten a reverse mortgage on their home. We've heard about them, of course, but talking to his friend, Tim got a little alarmed. 

This 'mortgage company' pays  60% of the value of the home. That's all. They own it, but the previous owner can continue to live in his or her own home. Except that the mortgage company can inspect the house and tell their 'tenant' that this has got to be fixed, or that the house needs painted, or that they want new carpet, etc. etc. If the 'tenant' does not comply, eviction proceedings are started. 

Tim was horrified. 

Why does anyone think this is a good idea? We discussed it as I got ready for work. I mused, "We've spent our whole life together trying to establish financial freedom. He has sold himself back into financial bondage."

I cannot help but wonder why this sort of thing is even legal. It seems like it is preying on the elderly. 

1 comment:

ellie k said...

They make this mortgage sound so good and I live near Sun City, Fl and people are desperate for moony to live on. So many people have no family or family that live up north and just Don't care about them until they die and then it's sell everything and send a check.