Careful Use Of Reverse Mortgages Can Help Seniors Get Out Of Bad Loans, Say Legal Aid Lawyers, Elder Advocates

The Wall Street Journal reports:

• Reverse mortgages used to be a way for homeowners to get extra cash during retirement. Now they're also being used for a more-pressing purpose: helping people who are struggling to meet payments on high-interest-rate loans to keep their homes. The strategy, which is relatively novel but gaining popularity among legal-aid attorneys and housing advocates around the country, calls for persuading lenders to take the cash generated by a reverse mortgage in lieu of foreclosing on older homeowners.

For more, see A Way for Older Homeowners To Back Out of a Bind (Some Find Banks Are Willing To Accept Reverse Mortgages To Retire Troubled Loans) (may require subscription; if no subscription, try here - then click link for story - then "refresh" the page, if needed; or try here, courtesy of the Arkansas Democrat Gazette).

Go here for stories related to potential Reverse Mortgage Problems. zebra