It’s not a loan. The bank buys back the equity you own in your house and you are free to do with that money whatever you want. For some seniors, especially those who have no need to pass on their property to an heir, it can give them cash for living expenses they otherwise would have to take from accumulated savings.
There is no problem with the Reverse Mortgage on its own....the problem is that Thompson, who was supposed to be a “conservative”, is pushing “Governemnt Backed” R-M’s....Government Backed real estate deals are a big reason why our economy tanked. Thompson is doing nothing more than endorsing Business Socialism
However, Reverse Mortgages cannot be done on homes “underwater”....and many elderly in southern states are very underwater on the homes. Most Florida elderly folks cannot do R-Ms because they are so underwater
Yep, it's hard to sell something you don't own.