Quote:
Originally Posted by dpg
So how do you pay them back? Do you sign a note promising to pay when the property's sold? Is there a law or something about selling and paying the note back, like a timeframe or something? Can you take a reverse then leave the home to a child??
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I think the intent is to never pay it back, thus why it seems to be marketed to retired folk and the elderly. The banks gives you small loan payments (in reverse) instead of one large lump sum home equity loan. Then they own the house and could make a killing when they sell it after your death. If you want to leave it to a relative, they will have to pay off the mortgage or refiance. I'm a huge Dave Ramsey fan and he clearly explains why they are such a bad deal.
Banks didn't come up with this scheme to help YOU.
