When Reverse Mortgages Go Bad.

[Elliott]

I never liked reverse mortgages.

What‘s next for this vacant home targeted by squatters?​

What‘s next for this vacant home targeted by squatters? Homeowner’s family responds

A Las Vegas Valley home targeted by squatters has been boarded up for a third time.

www.fox5vegas.com

LAS VEGAS, Nev. (FOX5) - A Las Vegas Valley home targeted by squatters has been boarded up for a third time, and frustrated neighbors want the homeowner’s family to finally step in to take care of the property.

FOX5 has covered the chronic challenges surrounding the property as squatters continue to break in. On October 22, a county crew returned to board up the home once again. No squatters were found inside, this time.

FOX5 has finally heard from the homeowner’s family on the situation.

Property records show that the home belongs to an elderly woman in her 80s. Last year, her family moved her out of state to care for her. The home has remained unoccupied and utilities are disconnected.

In an email to FOX5, her son said that they have called police about the squatters a number of times, but there is only so much that can be done when the homeowner isn’t present; his mother is in no condition to travel back to Nevada, the email states.

The home is in a reverse mortgage; her son tells FOX5, they have been trying to give the home back, but are having trouble doing so.

Neighbors tell FOX5 that they are skeptical about the urgency to get rid of the home. Neighbors are still dealing with a lingering smell and debris all over the property. Some believe that the home has attracted rats to the area.

“Give it back to the damn bank, and let the bank clean it up and sell it, instead of torturing the neighborhood,” a concerned neighbor tells FOX5.

 

[alebrewer]

Depends on the use of the loan. It can be very beneficial to folks that need to access equity. On the other hand, the fees associated with reverses are typically higher than more traditional loan products.

 

[KHS445]

Probably a simple case of the reverse mortgage balance being greater than the net value of the home, if the family were to sell it.

 

[mp2277]

I have been involved in some tragic and heart breaking situations involving reverse mortgages. I know they work when they work but there is a dark side that is rarely known or discussed.

 

[Charles West]

I have been involved in some tragic and heart breaking situations involving reverse mortgages. I know they work when they work but there is a dark side that is rarely known or discussed.

It gets ugly quickly when you reach the end of your line and aren't properly capitalized. That is exactly what propelled me at an early age to get my act together.

 

[alebrewer]

I have been involved in some tragic and heart breaking situations involving reverse mortgages. I know they work when they work but there is a dark side that is rarely known or discussed.

No doubt. That's probably why reverses are the only mortgages where the borrower is required to go through credit counseling prior to executing the mortgage.