This is another loan product that is seriously abused.  What makes this one worse is that it is designed for the elderly who are easily taken advantage of.  Reverse mortgages are not well understood by most people and this makes it easy for slick salesmen to take advantage of unwary borrowers.

I do think that reverse mortgages can be good for some borrowers, but they definitely need to consult with a "trusted" financial advisor before they decide to take out one of these loans.  They should not rely on someone who is selling them a reverse mortgage for this advice.

Best,
Robert A. Franco
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