AARP Sues HUD Over Shift in Reverse Mortgage Policies
AARP Sues HUD Over Shift in Reverse Mortgage Policies
About 23 percent of all mortgaged homes are underwater, .
"HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people," said Jean Constantine-Davis, an AARP Foundation senior lawyer.
Steve Ruark/AP Offered to people 62 and older, a reverse mortgage provides relief to homeowners facing foreclosure. Many older people and retirees on fixed incomes don't qualify for loan modifications or other foreclosure prevention aid, so reverse mortgages are often the last hope to save their homes.
A reverse mortgage is a loan that's secured by the home's value. Instead of a regular mortgage, in which homeowners repay a lender with monthly payments, a reverse mortgage is repaid when the house is sold. The older the homeowner, the more money they can borrow.
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AARP Sues HUD Over Shift in Reverse Mortgage Policies
Older homeowners forced into foreclosure suit says
Confusing rules and unfair policies on reverse mortgages have forced many older Americans into foreclosure, filed by AARP Foundation on Tuesday. The organization is suing the Department of Housing and Urban Development, which regulates the mortgage products.In the News
See for more on current events, entertainment and how it all relates to you. At issue is a key change made in 2008: HUD reversed its policy so that surviving spouses (even if they are not on the loan) must pay the full loan balance to keep the home, regardless of the home's value. So if the home loses equity and the survivor cannot repay the full loan amount when their spouse dies, they face eviction from their home.About 23 percent of all mortgaged homes are underwater, .
"HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people," said Jean Constantine-Davis, an AARP Foundation senior lawyer.
Steve Ruark/AP Offered to people 62 and older, a reverse mortgage provides relief to homeowners facing foreclosure. Many older people and retirees on fixed incomes don't qualify for loan modifications or other foreclosure prevention aid, so reverse mortgages are often the last hope to save their homes.
A reverse mortgage is a loan that's secured by the home's value. Instead of a regular mortgage, in which homeowners repay a lender with monthly payments, a reverse mortgage is repaid when the house is sold. The older the homeowner, the more money they can borrow.
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Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures