NBC Nightly News On Reverse Mortgages

Last Thursday, the NBC Nightly News ran a report on reverse mortgages and featured a California senior citizen homeowner who only needed a few bucks to fix her porch, and now fears that she may be facing financial ruin as a result of a reverse mortgage she took out. Reportedly, as part of the deal in getting the reverse mortgage, the sales agent sold the 78-year old woman a long term annuity that doesn't mature until 2033, and faced a 20% penalty for trying to access that money early. She is now part of a class action lawsuit going after the sales agent, the broker, and the lender alleging elder financial abuse.

To watch the report, see Back-stabbed by reverse mortgages? (no longer available online).

See also Pitfalls to Reverse Mortgages (NBC video).

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