WSJ: A Kinder, Gentler Reverse Mortgage

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The rules for securing a reverse mortgage are getting tougher. And most financial advisers say that’s a good thing…used wisely, reverse mortgages enable older adults to tap the value of their homes without having to uproot themselves and sell….  The main difference between a reverse mortgage and traditional mortgage is that the loan must be repaid in full when the homeowners—as listed on the deed—no longer live in the house. Many reverse-mortgage borrowers run into trouble, pulling all the equity out of their home, using up the cash, then finding they are unable to afford insurance, taxes and upkeep for the property. Some couples have been foreclosed on when only one spouse was listed on the deed, and that person subsequently died or moved into a nursing home.