reverse mortgage

Scam is the wrong word, but it is taking advantage of the vulnerable.

Say a home is worth $100,000. The reverse mortgage companies will offer you about 85% of value, or $85,000. They will charge outrageous closing costs. Sometimes 10%. So you are getting around $76,000 for your $100,000 home over 15 years. So about $425 a month. In 15 years, that $100k home might be worth $125k or more, but you still sold it for $76,000 and they will happily sell it back to you for $125k.

Last resort option.

Take the cash and purchase a private annuity. Almost always higher payouts.

it's not a scam and its a HUD backed program that has been around for decades. basically it allows people over 62 to access the equity in thier house without having to make payments. the house is yours until you die. let me stress that they cannont take your house from you. you can alos sell the house and payback the loan with interest. I personally dont do those types of mortgages but i have worked with companies in the past that do. i will give you an example. good friend of mine's dad reveresed his house last year after his wife had died. he was living on social security and a small retirement he had from being self employed for 30yrs. he recieved 40k in cash and doesnt make a house payment for the rest of his life. he son didnt want the house he has his own and dad's house was only about 10yrs old. the key is to shop the closing cost because they are sky high.