For some retired people choosing a legitimate company, reverse mortgage may be the best way to go.
For example, a married retired couple with very little income. The couple are struggling to pay their
mortgage and make ends meet. The couple never had children. The couple do not have help nor
access to anyone that can help them financially. When they die, their home will go to the state or
city. The couple still have many years to pay on their mortgage. With this couple, a reverse mortgage
may be the best way to go. Not only will they be paid instead, they'll have ease of mind and have
the extra money to help pay for the things they need and/or want.
BUT if you only have a few years left on paying your home loan off, a reverse mortgage would be
crazy. It wouldn't make sense. If you're in a bind, the best thing to do would be to sell your house.
If you sell your house, you can purchase something more affordable or outright and pocket the
extra to help with living expenses.
Yes, in the USA, it works basically like that.......a reverse mortgage pays you and pays your mortgage.
When you die, they take the property and sell it. That's how they make their money. Obviously
you would need to have a certain amount of equity in your house before you would qualify for a