A relative on dh's side is going to reverse mortgage their primary residence. Dh just heard and is much less than thrilled. It seems anything we've heard about reverse mortgages is negative and they seem rather scam-ish. Do these ever turn out well for the reverse mortgagee? Banks are in business to make money, so it seems they will be the one coming out ahead in the end. But are the cases where this is a good decision as opposed to selling the house and downsizing? Person in question is early 70's and not married. I don't know if it's to be a lump sum or paid out.
My main concern is what happens if person needs to go into assisted living or a nursing home in the next few years. At that point have they forfeited on the value of the house and the bank makes a killing? I've looked online but it's a bit overwhelming.
Edited by texasmom33, 21 April 2017 - 12:29 PM.