2 Answers

As I get older I am sort of suspicious about reverse mortgage.  First of all, an older person has no loan outstanding on the house.  He lives there and is unlikely to abuse the house.  The banker lends him money on a gradual basis while the collateral, the house, remains pretty much intact.  No risk to the banker.  They take no risk and yet they have the assets, the house.  The banker is laughing all the way to the bank, so to speak.

You signed documents when you obtained the reverse loan that you need to read completely to determine your liability and rights for redemption that would pertain to this situation. You will probably have to pay all monies back plus a penalty and fees. for this option to be utilized by you. Unfortunately you are bound by the contract unless you can prove fraud or non-disclosure when you took it out. Good luck and if your not sure what to do, have a accountant go over the amounts it will cost you before making a decision.