For those of you even considering a Reverse Mortgage or wondering why they are such a scam, read on:
The highlights of the article are: woman takes out $180,000 loan after paying off equity credit line. Home is worth $300,000. Woman falls behind in tax payments which trigger automatic foreclosure for fail to pay taxes.
Next thing you know she is in foreclosure court. But wait, there’s more. The loan has now, in 10 years, blossomed to a $300,000 balance. How did that happen?
I believe that once the foreclosure process has been started, even making the taxes current won’t stop the lender from foreclosing and taking the home.
What a lucrative way to do business!
The courts don’t seem to care and there are few regulations in place to allow elders and their families to get those tax payments current.
What a shame for this woman.