Reverse mortages have been around for a long time. Many people think very negative about the use of a reverse mortgage and the negative effects on a senior's estate. I think the only negative is the huge costs some approved brokers charge but the concept is great. In today's market seniors are getting hurt the most. It is a great way to tap into the equity of their home or even save their home from a foreclosure. The mortgage is just a mortgage with deferred interest. The estate retains all the equity over and above the mortgage.
Take a simple scenario:
A senior would like to take a couple hundred thousand out of their house instead of their declining retirement fund. Give some money to thier kids now before they pass away and still retain thier current lifestyle. What a great way to enjoy their estate while they are able to.
Or maybe they want to purchase a home and not liquidate their funds from an annuity or retirement account. They can put 30-40% down instead of liquidating 100% for a down payment. Then never have a house payment as long as they live.