A Plain & Simple Explanation

by Peter G. Miller
January 14th, 2008

The folks at the Charlotte News & Observer have come up with a really good reverse mortgage summary.

A reverse mortgage, says the newspaper, “is the exact opposite of a traditional mortgage. Rather than the borrower making monthly mortgage payments, the lender pays the borrower. Income and credit history are irrelevant.

“Instead, the mortgage is based on the equity — the home’s value minus debt — the homeowner has in the home.”

The article then goes on with a brief question-and-answer format. This is good stuff, plainly written and well balanced. For instance, one of the questions asks if a reverse mortgage borrower can be foreclosed? It seems like a strange idea given that there are no monthly payments with a reverse mortgage, but the answer is “yes” if the property is not maintained or property taxes are not paid.

For the whole story, see: When Mortgages Reverse

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