AARP Sues U.S. Over Effects of Reverse Mortgages.

[elleng]

Reverse mortgages, which pay older homeowners a regular sum against the equity in their house, are supposed to shield borrowers from economic upheaval. But the popular loans have become tangled up in the real estate collapse.

AARP, the seniors’ organization, filed suit Tuesday against the Department of Housing and Urban Development, which regulates reverse mortgages. The suit asserts that policy changes by HUD are pushing older homeowners into foreclosure. . .

The lawsuit focuses on reverse mortgages where only one spouse signed the loan document. It argues that HUD shifted course in late 2008, making changes in its procedures so that surviving spouses who are not named on the mortgage must pay the full loan balance to keep the home, even if the property is worth less.

http://www.nytimes.com/2011/03/09/business/09mortgage.html?_r=1&hpw

[bbinacan]

1. AARP is pissed off

because they didn't get a piece of the action.

[Tikki]

3. Absolutely...

AARP is, also, scam-like in many ways.


Tikki

[Snoutport]

2. I KNEW those had to be shady!!

2 good 2 b true

[K8-EEE]

4. Reverse Mortgages are the real "death tax"

Their purpose is to funnel money UP - from the middle class inheritors to the banks. No surprise that Freeper hero Fred Thompsono is hawking these damn things now.