Reverse Mortgage from a legal perspective

Posted by charles dennis

June 16, 2007

John Gosselin, a Massachusetts attorney who deals in elder law, offers the case for reverse mortgages on his Gosselin Law Blog.

Gosselin suggests that one reason for reluctant public acceptance of reverse mortgages was initial misunderstanding of the product:

“Reverse mortgage lenders, the elder law bar and the public did not get off on the right foot when reverse mortgages became generally available,” says Gosselin. “There were many confusing features to the initial loans and the government and banks did little to help borrowers understand their transactions. Reverse mortgages became known as the estate planning tool of last resort for truly financially needy elders. The elder law bar was hesitant to recommend reverse mortgages, estate planning lawyers put their heads in the sand and real estate lawyers, at least many of the real estate lawyers in Massachusetts that my law firm deals with, were completely in the dark on the workings and benefits of reverse mortgages. So what has changed? In a word, education. The reverse mortgage industry made it their mission to educate the market place, not only consumers but also lenders about the powerful benefits of reverse mortgages.”

Read More of Gosselin’s perspectives here.

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