Quote:
Originally Posted by Moses
One potential problem with reverse mortgages is that the home owner will never benefit from any increases in the property value after the reverse mortgage is established.
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But if the house appreciates during the loan's lifespan why would the homeowner not benefit? Would they not sell the house, realize the gain and repay the reverse loan?
Also, I believe there are pretty rigorous fed regulations governing the reverse mortgage programs, specifically to protect the typical (elderly) customer.