I’ve never known anyone who got a reverse mortgage.
I had thought the borrower’s liability could not exceed
the property being borrowed against. Although recent commercials by Tom Selleck make me think otherwise now.
From the lender’s perspective, there are the following risks:
The borrowers live to advanced age, say 90+ when they took out the loan at age 65.
The value of the house could be severely diminished at the time of the owners’ death, due to disrepair of the house or the neighborhood it’s in.
How could anyone get “qualified” to make predictions like that?