Reverse 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…
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