There was a story about how reverse mortgages can lead to financial ruin that I found somewhat interesting – especially with the amount of seniors who are looking into getting an Arizona reverse mortgage.
Will a reverse mortgage lead to financial ruin?
According to Consumer Reports… maybe!
From the story:
Ads for reverse mortgages sound pretty enticing. Use the equity in your home to pay off debts or make a big purchase. You’ll still be able to stay in your house and even have some money to leave to your heirs.
At 83 years old, Arlene Schwemmer is no longer able to live on her own and has had to move. She’s worried that she’ll get nothing from the sale of the home she shared with her late husband for 49 years.
Arlene’s daughter says that’s because a broker persuaded her parents to take out a reverse mortgage four years ago. The terms were complicated and hard to decipher.
“The decision on the reverse mortgage was one of the worst decisions I think my folks had ever made. It was tragic,” Diane Zaugg said.
The Key To Not Letting A Reverse Mortgage Ruin You
If you are a senior who is thinking about a reverse mortgage, there can be far better financial alternatives for you than getting a reverse mortgage. It all depends on your financial situation. The only way that a reverse mortgage can really “ruin” you is if you had a better option and didn’t take advantage of it.
But for many, many seniors who are currently thinking of taking advantage of the FHA reverse mortgage program – they really have no other alternative to accessing money they need to live on.
And if it is your last resort, can you really say that it was a bad decision?
I don’t see how.
More From Arizona Mortgage Team
- The FHA Streamline Refinance: Do You Need A 620 Credit Score?
- Arizona FHA Reverse Mortgages – Ten Reasons Seniors Choose A Reverse Mortgage
- Arizona Reverse Mortgages: Can You Get A Reverse Mortgage That Isn’t An FHA HECM Reverse Mortgage?
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