Reverse mortgages are a popular way for seniors to access needed funds, but can also lead to foreclosure. We look at the controversy.
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New England Center For Investigative Reporting: Foreclosures On The Rise For Seniors With Reverse Mortgages — "Across the nation, an increasing number of seniors are facing foreclosure after taking out reverse mortgages, either because they fell behind on property charges or failed to meet other requirements of the complex mortgage loans, according to federal data and interviews with consumer and housing specialists. 'Folks who had expected to age in place and live for the rest of their lives in their home are now having to scramble to find a new place to live,' said Odette Williamson, a staff attorney with the Boston-based National Consumer Law Center, which advocates for consumer justice for low-income people. 'People just don’t know where to turn. It’s heartbreaking.'"
Marketplace: What You Need To Know About Reverse Mortgages ... And Their New Rules — "The main headline: Senior homeowners won't be able to borrow as much. Plus, they'll have to pay more upfront. The reason is that one in five reverse mortgages taken out between 2009 and last year are expected to default. So, what’s the purpose of a reverse mortgage and why the new rules? We break down what you need to know. "
This segment aired on October 9, 2017.