Officials fear baby boomers banking on confusing mortgage plan

Real Time

house moneyReverse mortgages are touted on T.V. by The Fonz and a former presidential candidate, but a report released today shows that seniors are increasingly frustrated with a product that can be confusing and end in a foreclosure.

The Consumer Financial Protection Bureau released a 15-page report detailing consumer complaints about reverse mortgages, which can be obtained by homeowners 62-years-old and older. It allows owners to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell, or move out.

Read the bureau consumer advisory here.

But owners are still responsible for taxes and insurance payments on the home. If those payments aren’t made, the bank could repossess the house.

“Consumer complaints tell us that the complex terms of reverse mortgages continue to be misunderstood,” said Richard Cordray, director of the Consumer Financial Protection Bureau. “As more baby boomers choose…

View original post 194 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s