A type of mortgage designed to use the equity value of a home as collateral for installment payments to the borrower, usually so as to supplement an elderly borrower's living expenses. With a Reverse mortgage, the homeowner actually receives payments from the lender. The loan is recouped when the borrower dies and the property is sold or inherited by someone who can make the payments. Note that the home cannot be foreclosed as long as the borrower is alive and occupying the subject property. For more information, see the "Reverse Mortgages" article in the "Loan Programs" section.
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