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explain reverse mortgages should the children be expected to pay off the mortgage upon the parent's death is this another scam upon the eldery?

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I have a friend who's mom got a reverse mortgage - They got $100,000 - 11,000 for "processing" fees for a total of $89,000. in this case the deed to the house doesn't go to the bank until Mom passes away. Mom can't live alone any more so they are selling the house for $175,000. They will pay back the $100,000 and keep the difference for Mom - $75,000. I must say that my friend did something really dumb - she talked Mom into expensive landscaping, new furniture and a new front porch - $40,000 of work from the $89,000 that mom got. Granted, it helped raise the selling price of the house but not a lot. If they can't get the extra $75,000, the only beneficiary of the improvements is the bank! If mom had died before selling the house - the bank will sell for WAY more than the $100,000. That IS the point of reverse mortgages I suppose..
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My folk's house is paid for, they had an appraisal done and got money to live off from the reverse mortgage. I'm not sure how much money is lent as to how much the house is worth though. If the house is worth $200,00 then they got $180,000 I think. When they die, yes we have to sell the house and pay it back.
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The National Reverse Mortgage Lenders Associations is supposed to oversee any breaches in conduct. Please look online for this organization and its Ethics Complaint form if you feel that has not happened.
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