How do reverse mortgages work?
Seniors who are longtime homeowners may have another tool for surviving the economic recession: reverse mortgages.
The state Department of Consumer Affairs has stepped in to offer a simple explanation about the complicated financial procedure, which enables homeowners to tap into their built-up equity for living expenses.
The group will hold a 30-minute teleconference at 2 p.m. Tuesday to explain the pros and cons of a reverse mortgage and similar mortgage-related products.
The seminar will also offer tips to seniors on how to tell the difference between a legitimate reverse mortgage or a scam. Reverse mortgages are heavily regulated to protect vulnerable homeowners.
Robert Mitchell of Trident United Way, which has offered reverse mortgage counseling in the past, said he's seen growing interest in the financial transaction since the economic slump.
"Prices are going up and seniors' income is still staying the same," he said. "Food is going up, and they have repairs to be done. They're going to use this equity to do these things so they can stay there comfortably."
Register for the teleconference online at www.scconsumer.gov by 5 p.m. today.
Reach Katy Stech at 937-5549 or kstech@postandcourier.com.
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