Reverse Mortgages

[firstsource]

Your initial question, what do foreclosure bailouts and reverse mortgages have in common?
Here is the answer.
If you qualify, once you get the loan you can never be put in that position again. These are non-recourse loans that can not be foreclosed on. You can live there as long as you live. No mortgage payments.

I know that this sounds too good to be true, so there much be a catch. Of course there is:

Here is the deal:
At a minimum the youngest person on title has to be 62. Works best if you are 70's.
At 75 you can have 65% equity in your home and it works to an extent. What I mean by this is that with that situation, you won't have any house payments ever. If you are older or have more equity in your home, you can get money back.

You have to pay off any judgments and Tax liens that show up on title.

That is all of the bad/difficult stuff.
You keep title to your home, when you die your heirs inherit the property. One (or maybe all of them) have a clause that-worst case-when you die your heirs can have the property for 95% of current appraised value. In my mom's case-she is 78 and in bad health-when she dies her heirs will get about 65% of the value of the home.

Hope that is informative.

Charles