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Through the years, many people have created a stigma about reverse mortgages; the most common myth is that lenders will get to keep the home, which is certainly not true. Reverse mortgage lender just keeps a trust deed on the home. Borrowers will fully own their home but will not have to make the monthly mortgage payments. 

In fact, borrowers cant start the loan process without going through a HUD approved counselor for a consultation. Only a borrower produced HUD certified, can start the loan process. Moreover, a reverse mortgage is a government loan that is administered by FHA.

Currently, I'm helping an elderly couple in their mid-70s. Who are in a very tight fixed income. Yet, their first and second mortgage payments would take up most of their monthly income. They have been scrapping by financially, while receiving some help from their children, and making overdue payments on credit cards.

Thanks to the recent housing boom, their home value has risen dramatically. They sit on a lot of equity. Yet, they prefer not to sell their beloved home. As I visited them, I'm greeted by a lovely couple who have fallen in challenging times. They looked to me for guidance. I provided them with the option for a reverse mortgage. After educating this couple, they were pleasantly surprised that they had options. They loved the idea. I also proposed a LESA account so their property tax as well as home insurance could blend into the new loan, therefore, if the loan goes through as planned, they will not have to make any payments on the house.

Yet, this loan is not without challenges: although they are sitting on a lot equity. They still currently owe a loan amount that is higher than the maximum reverse mortgage amount that they've been qualified. I am still working with their current lender to agree on a short pay. Hopefully their lender will come to their sense and agree to a short pay.