Can Borrowers Lose Their Home With A Reverse Mortgage?
The answer is yes, you can lose your home with a reverse mortgage. However, there are only specific situations where this may occur: You no longer live in your home as your primary residence. You move or sell your home.
How many people have lost their homes with a reverse mortgage?
A USA Today investigative report last year found that following the Great Recession, nearly 100,000 reverse mortgages failed, "blindsiding elderly borrowers and their families and dragging down property values in their neighborhoods."
How Reverse Mortgages Backfire in Low-Income, Minority Neighborhoods
Who owns the property when the borrower has a reverse mortgage on the property?
A reverse mortgage is a rising debt, falling equity loan since you are taking money out of your home and since you make no payments, the balance goes up and your equity goes down. But as with either loan, you always own the home and any equity in the property belongs to you or your heirs.
If I Take a Reverse Mortgage Does the Bank Own My Home?