On the plus side, reverse mortgages enable seniors, no longer collecting a paycheck to stay in their homes and maintain their standard of living.
The bank sends monthly mortgage payments that seniors may use however they like.
Karen Buck, Executive Director of Senior Law Center said, "Reverse mortgages can be a wonderful tool for many seniors. But they are not for everyone."
Experts say it's important to understand the ins and outs of reverse mortgages.
Action News spoke with Judge Annette Rizzo from the Court of Common Pleas, Philadelphia.
She told us there are certain conditions of reverse mortgages that must be met.
1. You must maintain the property
2. Pay Taxes on the property
3. Pay insurance on the property
Almost always with reverse mortgages, the bank gets the home when the homeowner dies.
Reverse mortgage consists of:
1. Homeowners over 62
2. Receive a payment equal to equity in the home
3. No more mortgage payments
For free advice on reverse mortgages or other legal issues, contact the Senior Law Center at 877-727-7529.
