“New York Times” Warns About Reverse-Mortage Deceptions
In the reverse mortgage world, things haven’t been the same since the big banks left, claims The New York Times. After Bank of America, Wells Fargo and MetLife stopped offering these senior loans, smaller companies stepped in—and not always for the better, the paper reports.
Some of them steer seniors into expensive, risky loans with deceptive sales pitches and high-pressure tactics, according to regulators, housing counselors and elder-care advocates.
The article goes over a number of things to watch out for if you’re taking out a reverse mortgage. For example:
Some lenders are aggressively pitching loans to seniors who cannot afford the fees associated with them, not to mention the property taxes and maintenance. Others are wooing seniors with promises that the loans are free money that can be used to finance long-coveted cruises, without clearly explaining the risks. Some widows are facing eviction after they say they were pressured to keep their name off the deed without being told that they could be left facing foreclosure after their husbands died.
Warnings about reverse mortgages are nothing new, nor are the praises on the flip side from people who have benefited them. The consistent message is research, research, research. Understand your options and what you’re getting into.
To read more news about reverse mortgages, click here.
Leigh Ann Otte is a freelance writer who specializes in health and aging issues. She covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.