There are all kinds of reasons why people get a reverse mortgage. The most common reason is due to some sort of financial hardship. A financial hardship could include the loss of a spouse, loss of income, divorce, long term care need, consumer debt or depletion of retirement funds.
Because the reverse mortgage is most often used when people are in some sort of financial hardship, it is often referred to as the loan of last resort.
The reality is that a reverse mortgage is just a financial tool. It can be used in a variety or ways for a variety of different reasons.
Myself, along with many other reverse mortgage professionals are trying to educate consumers and professionals on how a reverse mortgage should be part of an overall plan. And not treated as a last resort option. When a reverse mortgage is used as part of a retirement plan, it can dramatically reduce financial risks during retirement, increase success rates of financial plans and even leave a larger estate for heirs.
Never the less, the pages that drop down cover the most common reasons why people get a reverse mortgage.
The blog covers some of these reasons more in depth as well as covers scenarios that you may find yourself in.