One widow’s reverse mortgage “nightmare” underscores the financial tool’s risks, according to a recent article by NBC News.
Eighty-two-year-old Arlene Hill claims an “eager” broker provided false information about the terms of the reverse mortgage, and she is now fighting to keep her home in Simi Valley, Calif. since her husband passed away.
The broker allegedly encouraged Hill to remove her name from the title so she and her husband could qualify for a bigger reverse mortgage based on her older husband’s age, according to NBC.
“Three years later, after Herb [her husband] had died, Hill discovered the broker had failed to tell her that getting her name restored to the title would be costly and wouldn’t happen automatically, as she had been led to believe,” NBC says.
The article also references the Consumer Financial Protection Bureau’s report regarding misleading reverse mortgage ads.
Read the article here.
Written by Cassandra Dowell
