Reverse mortgages and foreclosure: Beware of the many strings attached

Realty Check

By Erica Minchella

Erica Crohn Minchella, is the head of the boutique real estate firm of Minchella & Associates, Ltd., handling residential and commercial real estate transactions and litigation such as foreclosure defense, quiet title, and partition actions. erica@ecminchellalaw.com

Posted December 8, 2022 10:53 AM

In the right circumstances, I am usually in favor of home equity conversion mortgages, also known as reverse mortgages. The mortgagee takes the existing equity on a mortgagor’s property and converts that equity into monthly payments made to the mortgagor. And the arrangement allows the homeowner to take or convert equity from their home without having the obligation to continue making mortgage payments. It can help homeowners who might otherwise fall into default to remain in their homes. It can also allow a homeowner to …

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