Reverse mortgages gain steam
But retirees can face fees and abuse from lenders
Diane and Peter Carrara moved into their dream house in Chepa chet, R.I., in 1958. It was an unfinished shell — no doors, bathtub, heat, or even finished flooring — but it was near a lake and nestled in the woods, just like they wanted.
They talked the owner into ac cepting $50 a month the first year, while Peter finished enough of the house to qualify for a mortgage. They pinned blankets across the kitchen doorway to keep in the stove’s heat, and slept on the floor “with all the clothes we owned on our back” and their 2-year old son between them, Diane said.
Over the next half-century, they finished the basement and the walls, added a deck, and landscaped the property, with Peter doing most of the work.
So when the medical bills started piling up a few years ago, they weren’t about to sell their home. They signed up for a reverse mortgage that gave them $20,000 up-front, a line of credit, and $400 a month for as long as one of them lives in the house.
Post from: Reverse Mortgage Loan Blog
