An AARP video released last week through its “E Street” series focuses on reverse mortgage pros and cons. The footage features two recent borrowers who have appeared in past E Street coverage; one with a successful reverse mortgage experience, and the other, a plaintiff in a recent lawsuit brought by AARP against the Department of Housing and Urban Development over the non-recourse policy of reverse mortgages. The second borrower had been removed from his home’s title upon getting the reverse mortgage in his wife’s name.
View the AARP video.
The video offers perspective on how a reverse mortgage can work well, in the case of offering financial freedom, but also includes some cautions, including the “complicated rules” a reverse mortgage includes, high fees and the fact it is not a traditional mortgage.
Written by Elizabeth Ecker