Thank you for your time. --73.108.xxx.xxx

Well the mayor of South Portland ME told the residents to get a reverse mortgage in order to pay their propery taxes so there's that. --64.246.xxx.xx

basically you can get a reverse mortgage to either receive a lump sum of cash or monthly payment until you reach a certain amount of equity.He probably had a mortgage payment and used the reverse mortgage to pay it off and now he does not have a payment any longer but will eventually have no equity either.They do have the right to do inspections and tell you to do maintenance like paint exterior etc.He doesnt think he got screwed but the general concenses is it is a high cost of borrowing --104.131.xxx.xx

Had a neighbor who did this. After they both died the daughter had a time exiting but eventually she did and it was fine. However the uncle may have to occupy the home and at some point he may have to have more care and leave yet posture that the home is occupied. Hopefully this uncle has children who will deal with it. For now he's happy, for the rest of his life. --172.59.xxx.x

If he is happy with that, then you should offer him a life estate in the property and give him 50 cents on the dollar --24.101.xxx.xxx

FWIW, they have changed a good deal since their original inception and are NOT as much of a rip-off or danger as they were originally if you deal with a good bank. Just know how much the money is costing you, the terms, etc. as you would with any loan. --198.54.xxx.xxx

If you are disciplined person and don't use the money to gamble, for instance, it's a nice way to tap into funds that are just sitting there doing you no good except adding to your net worth on paper - like equity in any home. --198.54.xxx.xxx

Now I remember the main drawback TO US. We would have had to pay the $15k - built into the loan so not cash out of pocket - even if we never tapped the equity. Not a huge deal, but because we didn't have a mortgage at all, a new mortgage was cheaper. It put the money in our hands right away and we have to pay it back of course, but the rates were really low then. Balance out, for us the regular mortgage was the slightly better deal. --198.54.xxx.xxx

--73.108.xxx.xxx

I agree, fishy on some levels. The sales agents for reverse mortgages are definitely SALES agents so it is up to the consumer to do their due diligence. But honestly, because the loans are limited in scope (only availabe if you are over 62, have X equity, etc.) they are not the rip-offs of old. The government stepped in and regulated them long ago. They really are providing a needed service to people who might otherwise have to sell their home to get quick cash. --198.54.xxx.xxx

Thank you for everyone's replies thus far. --73.108.xxx.xxx

is charged an up-front mortgage insurance premium (UFMIP) fee1 at closing and, over the life of the loan, is charged an annual MIP fee on the loan balance. " --73.108.xxx.xxx

Rules like paying for repairs and upkeep and paying real estate taxes. --98.34.xx.xxx

When she dies or moves out, the bank will get her house. But she doesn't seem to care even a whit about her three children, so doesn't care that they will not inherit the house when she dies. It all works for her. So, whether or not it is a good idea will depend upon your circumstances. --76.178.xxx.xxx

And I don't think parents owe their children a house, FWTW. --198.54.xxx.xxx

Couldn't agree more with your last sentence WMH. --107.147.xx.xx

Warning - small print. --69.130.xxx.xxx

The are betting on getting the house sooner rather than later. Odds in their favor with aging population --172.59.xxx.xxx

Exactly, RB. Agreed Plenty. --73.108.xxx.xxx