The Great Reverse Mortgage Conspiracy

A Prologue: Putting on Our Tin Foil Hats

Alright, let's dive down the rabbit hole. There's a conspiracy afoot. For decades, a persistent rumor has circulated: "Get a reverse mortgage, and the bank will own your home!" But here's where the conspiracy gets interesting. The FHA-insured HECM reverse mortgage program was created by Congress in 1989 with a mountain of consumer safeguards. It makes you wonder... why would a government program designed to help seniors stay in their homes include a secret plan for the bank to take their homes? It doesn't make any sense.

The Promise You Make (And the One You've Always Made)

Every loan you've ever had included a Promissory Note—a document where you "promise to pay." A reverse mortgage is no different. Your promise isn't about making a monthly payment; it's simply to live in the home, pay your property taxes and insurance, and maintain the property. As long as you honor that simple promise, your home will always have only one owner.

A Story Line from a 1920s Silent Movie

So where did the "bank owns your home" myth come from? It's a storyline from a 1920s silent movie. Before banking laws changed almost a century ago, some mortgages did work that way. But today, the idea is absurd.

In the rare case of a foreclosure (usually from not paying property taxes), the lender never has ownership of the home. HUD/FHA is now the owner, and they handle the disposition of the property. The "bank owns your home" story is, and always has been, a myth.

The Promise to Your Heirs (The 95% Rule)

The program is also built on a powerful promise to your family. If the loan balance is more than the home is worth when you pass away, your heirs have a unique, protected option. They can choose to purchase the family home for 95% of its current appraised value, regardless of the higher loan balance.

And if they don't wish to keep the home, they can simply hand over the keys and walk away, owing nothing. Saving everyone a lot of time, money, and aggravation. The FHA insurance covers the loss.

So, Here's the Real Conspiracy Question...

Given all these powerful, government-insured safeguards designed to help you stay in your home and protect your family... who benefits from keeping this information from you?

Who benefits?

Don't let a financial ghost story from a bygone era dictate your future. It's time to stop the spread of misinformation and become a Reverse Mortgage Conspiracy Buster!

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Greg Cook