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

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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
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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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Dear Connie,
A reverse mortgage is a complex financial instrument with lifelong consequences. It should be used as part of your financial strategy, to meet your financial goals and provide financial security through retirement. If it meets these goals then you can consider the use (to pay off debt) but never thing how you want to use the money first. I talk to consumers and their families everyday who have been financially devastated by the consequences. Sandy Reverse Mortgage Suitability and Abuse Expert
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