Will a reverse mortgage help mom get out of debt?

Asked by connieveneziano  |  Nov 18, 2009

My mother has accumlated a huge debt. Does anyone done a reverse mortage as a possible solution?
Connie

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Carol Bradley Bursack, Nov 19, 2009

Over the span of two decades author, columnist and speaker Carol Bradley Bursack cared for a neighbor and six elderly family members. Because of this experience, Bradley Bursack created a portable support group, the book "Minding Our Elders: Caregivers Share Their Personal Stories."

 

Reverse mortgages can have their good points and work well for some people. For others it's not the right decision. I would check with a financial counselor on your mother's situation to see if this is a smart move. Much depends on her bank, how much equity she has in her home and her other debt.

Good luck with this,
Carol

 
 

anonymous13319

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Nov 19, 2009

My cousin, who is in her early 70s, decided to use a reverse mortgage to supllement her income. I admit that I am always skeptical of "easy solutions." But for her situation, it seems to have worked.

I know that they come with fees and interest. You are dipping into your equity so, in essence, you are putting up your home against the "loan." When my cousin passes, the debt will have to be honored before her heirs can inherit anything.

I would personally worry if I outlived the amount of equity in my home...does the bank, then, evict you? Not sure.

I do not know much more about them. I would suggest trying other avenues, if possible, before signing any paperwork.

 
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