New Reverse Mortgage Abuses Pushing Seniors Out of their Homes

Who didn't see this coming?

Fools.

Of elder abuse. Too bad the same douchebags that investigate elder abuse are very ones doing it! No big surprise here.

Whenever I see a commercial for this I cringe. It should be obvious to people that it's not a good idea.

that the interest on whatever amount they've taken is not paid until the house is sold (sale by the owner or by the estate after death). That means they have to pay back not only the amount of the money taken but, also all of the interest that wasn't paid. In the end, they owe a hell of a lot more than what they borrowed in the first place. Watch out when the value of the home goes down, because even though they were allowed to borrow up to 80% of the value (the banks aren't stupid), they will owe whatever loss in value plus all that interest and could end up owing more than the sale would generate.

The only good thing about these loans is that it allows seniors on small income and depleted savings (between the rising expenses of property taxes, utilities, food, insurances) to stay in their homes by loaning them the money to pay for the property taxes, utilities, food and insurance.

Anyone taking out this kind of a loan to finance vacations and such, is living in a fool's paradise. It is a last resort kind of loan to keep the roof over your head for a limited period of time. Anyone pushing these reverse mortgages for any other reason should not be trusted.

The banks are definitely encouraging people to max out on loans and mortgages. I was shocked to hear from a young couple wanting a starter home. They were pushed by the bank loan officer to take out a mortgage for double the amount, which would max out the amount they could afford to pay each month. When you are maxed out on your payments it leaves no room for anything but the credit card.

Anyone see a pattern here? It is all about interest earned and the interest goes to the wealthy of the world to keep them living the good life without having to ever work. They just live off the interest from people and governments borrowing money!

The only way to end this is to live within your means and live a simple life. TV and billboards continually brain wash all of us to WANT MORE! We are programmed to buy things, do things, take trips, and this is supposed to make us HAPPY. It all costs money and the elite are living off the INTEREST. Break free of the trap.

On one hand, these people signed a contract, which in this overlawyered age is considered something akin to sacred (unless the government doesn't like it, of course. Then it's null and void)

On the other hand, there is probably something fundamentally wrong about a society with a legal system that uphold 300 page contracts written specifically to trick people into signing. Split the country up into 1000 independent jurisdictions, instead of one gigantic Leviathan, and then see if the jurisdiction these old people live in, agree to uphold the contract they supposedly signed. I know if I was called into jury duty and was given one of those contracts, I'd just roll my eyes and tell those wanting me to take someones house on account of them, to keep it short, concise and understandable next time, since I have absolutely no intention of wasting my time on pointless legalese. Fairly certain that if short, concise and understandable by pretty much anyone was a basic standard for contracts with non technical entities, the room for abuse would be much smaller.

So much of what passes for "private enterprise" in Dystopia, is about tricking people by offering a few cents up front, and then coming back to collect all they've got a bit down the line. With the Leviathan state backing them up, of course. Which is yet another reason why anarchy just works better in practice, than some halfway society, where virtually omnipotent government is OK as long as they supposedly just "enforce contracts". In anarchy, in addition to drag out some piece of paper you claim says something, you also have to convince others that your claim has some sort of merit; otherwise you're on your own in collecting, while everyone else gets top gang up you and prevent you from doing so. Keeping everyone honest, or at least minimally decent, so to speak.

Kinda figured it was common knowledge that the whole reverse mortgage thing is a scam, no?

Can't say I feel sorry, though; more people need to do their own research rather than trust that so-and-so is going to give it to them straight.

This comment, made by an 84 year old, puts it nicely:
"My problem with these people and reverse mortgages is the inability of these people to understand basic finance and to manage their money. [...] It's about time the heirs to the "greatest generation" took responsibility for their lives."

had an overwhelming feeling like it was too good to be true, and was astounded to hear Fred Thompson endorse such a program that is funded by the Govt. Only a matter of time until we hear things like these associated with the reverse mortgage scheme. Is it the seniors fault? One can say yes, but there was a time when bankers had integrity and actually told the truth to their clients, not just selling a bill of goods to anyone with their hands out.