Reverse mortgage.

Has anyone investigated this concept? Has anyone done it that you know of? I have inquired about it sounds like a good deal, but unfortunately my home is in a resort and even though paid for, I don't own the lot it sits on so it isn't considered real estate. What a bummer!!!

DON'T DO IT! Many a are lobbying against reverse mortgages. Why? Many unscrupulous folks are always looking for a way to separate seniors from their money. Whether it be with a bad investment (and bad can be defined as risky or one that cannot be accessed for long periods of time without penalty which the senior borrower may not have) or just someone looking to steal from the senior, having a lot of cash is a tempting target and many seniors are too trusting.

A reverse mortgage is NOT a good deal for most people, but the sales reps make it seem so.

Some folks who have limited income and need money to get by, or who have adequate equity in their home and want to travel, etc, can make it work for them IF they investigate it fully and be sure to make the payment term for as long as possible.

What can happen is a 70 yr old woman might sign up for a 20-year payment plan, thinking she won't live to be 90. So what happens when she turns 90? She's out the door with no place to live and no money from her home to help her survive.

Be very cautious of these loans. There are also very high fees to obtain them, which really cuts into the money you'll receive. You may also be responsible for HO Insurance, maintenance, property taxes, and even mortagage insurance. Here's a link about the pros and cons:

http://www.bankrate.com/brm/news/mortgages/20070104_reverse_mortgage_a1.asp

Geesh, I guess if it sounds too good to be true it really is...That stinks!

I am so glad I asked the question Dancing and Mustang, in case someone asks me I know more now.

Dancing Dolphin gave good advice which is applicable to Canadians also.