Some perils of a reverse mortgage | Valley Life

Dear Annie: With reference to a recent column in which the reader said she had lost her home to a reverse mortgage, there are two primary ways this can happen, and I want to explain how to avoid this so that it never happens to any other reader.

In a reverse mortgage, the money paid by the lender to the homeowner in reverse does NOT include the lender making property tax and hazard insurance payments on the property. Those payments must be made, and kept current, by the reverse mortgagor (the homeowner) from his or her own resources.

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