Reverse Mortgage Problem

I'd like to hear what the sad stories are, because I don't know many drawbacks to reverse mortgages. Placing one does involve closing costs, which become part of the debt that gradually builds up as you receive payments. Maybe that's what your friends are concerned about. If you have kids, you'd be leaving them a house with a mortgage, which must be paid off when you die, or before that if you move out. Those are the only downsides I know. As with any other loan, the money you receive isn't taxable because it will be paid back some day. You remain owner of the property, like any homeowner with a mortgage. The most common reverse mortgage, backed by HUD, requires that you receive counseling to understand what is involved. Go ahead and investigate.