REVERSE MORTGAGES HAVE THEIR PITFALLS TOO! In a report by the Consumer Financial Protection Bureau (CFPB), statistics on Reverse mortgages show an alarming possibility to create problems for the homeowners where there shouldn't be any. The biggest problem is in the borrower fully understanding all of their obligations under the mortgage. The process is set up so that the owner makes no mortgage payments, and the loan is eventually repaid from the sale proceeds when the owner either dies or moves. One exception, however, is that all taxes and similar obligations must be paid by the owner. Failure to do so is a default and can lead to foreclosure. Apparently many owners availing themselves of the Reverse Mortgage do not fully understand this, and, as a result, are risking foreclosure. Also, many owners fail to grasp the relationship of their equity in the home to the loan, and can also find themselves in trouble as a result. If you have, or are thinking of getting a reverse loan, check very carefully with your lender, and, if you feel it necessary, bring along your attorney to help review the documents and your obligations.