Banking Industry at it's best :x This (as the article states) has been going on for sometime; the problem is their (banks) are no better than con artists who hit & run on the elderly. When dealing with the elderly it should be madatory that they cannot sign any documents or be held accountable without their own "leagal representative" present. Who knows what state of mind this lady was in. 8O
This practice is a take off of reverse amortization mortgages, but with a bigger rip off in the end run because they are taking advantage of someone who does not fully understand the consequences. It is a shame, but matbe it will bring to light the problem in this area of the Lending Industry.
Don't know how the appraiser fits into the package, as the Debt noted doesn't come close to even his estimated value; if he/she showed the property was worth more, the bank would have probably fleeced more out of the homeowner.