Lately we've been hearing a lot about reverse mortgages and the benefits they may offer to cash-strapped seniors. Briefly, reverse mortgages are available as long-term loans to people over age 62 who own their own home. Typically, the homeowner receives a cash payment, either in a lump sum or as a line of credit, and is allowed to remain in the home. The loan (principal and interest) is repaid when the owner sells the house or dies. While this may sound attractive, these loans are subject to abuse, which can create unexpected problems, so if you're tempted, be sure to investigate thoroughly.
