Alert
Close

Help Decide the Future of Aging. Join the White House’s Live Stream From Cleveland Monday. Learn more

Highlights

Open
Renew for 3 and attend Life at 50+ for free

Contests and
Sweeps

You Could Choose Your Dream Vacation!

Hawaii, the Grand Canyon or an Alaskan Cruise! No purchase necessary. Ends May 31. See official rules.


Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

You Could Choose Your Dream Vacation
Happy African American couple

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

AARP Sues HUD Over Shift in Reverse Mortgage Policies

Older homeowners forced into foreclosure, suit says

Confusing rules and unfair policies on reverse mortgages have forced many older Americans into foreclosure, states a lawsuit filed by AARP Foundation on Tuesday. The organization is suing the Department of Housing and Urban Development, which regulates the mortgage products.

At issue is a key change made in 2008: HUD reversed its policy so that surviving spouses (even if they are not on the loan) must pay the full loan balance to keep the home, regardless of the home's value. So if the home loses equity and the survivor cannot repay the full loan amount when their spouse dies, they face eviction from their home.

About 23 percent of all mortgaged homes are underwater, according to housing data firm CoreLogic.
 
"HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people," said Jean Constantine-Davis, an AARP Foundation senior lawyer.

In this Nov. 1, 2010 photograph, Robin Miles, 70, stands outside her Baltimore home. About a year ago, Miles got a reverse mortgage on the three-bedroom Spanish-style house.

— Steve Ruark/AP

Offered to people 62 and older, a reverse mortgage provides relief to homeowners facing foreclosure. Many older people and retirees on fixed incomes don't qualify for loan modifications or other foreclosure prevention aid, so reverse mortgages are often the last hope to save their homes.
 
A reverse mortgage is a loan that's secured by the home's value. Instead of a regular mortgage, in which homeowners repay a lender with monthly payments, a reverse mortgage is repaid when the house is sold. The older the homeowner, the more money they can borrow.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Credit safeguards with AARP® Identity Theft Protection from TrustedID®.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Man using cell phone outdoors

Members save on monthly service & usage fees and get free activation with Consumer Cellular.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Advertisement

Advance your skills. Transform your career.

Explore your learning possibilities.