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From the posted article: "In fact, reverse mortgages allow seniors to take on additional debt without any risk to them. All of the debt is passed on to the beneficiaries without their permission. "

This analysis sounds like nonsense to me.

If the seniors have equity in the home, they should be free to use that equity in any manner they wish.

The analysis makes it sound as if the reverse mortgage will result in negative equity in the home and that the heirs will have to pay off this debt. Somehow, I doubt that this is true.

What is perhaps true, and completely fair to every party involved, is that the debt may have to be paid off from the seniors' estate. This might involve assets beyond the property which has the reverse mortgage on it, but it would still be property belonging to the seniors and they should be able to do with it anything they wish.

There should be no obligation that seniors should have to live an unnecessarily frugal life or continue living in a home which doesn't suit them simply in order to preserve an inheritance for their offspring.

I've helped my kids get a financial start in life but I still intend to get a bumper sticker saying, "I'm spending my kids' inheritance." When the time comes, they can do the same.

I also think that the blanket condemnation of reverse mortgages is nonsense. IF your situation fits, and IF you understand it thoroughly, it can be a good source of income. My mom is proof, she now realizes it as a lifesaver.

Of course there are unscrupulous salesmen out there that will conceal the pitfalls of RM's that are not suitable for everyone in order to close the deal. But "buyer beware" is my motto. We studied all the aspects thoroughly, and found that mom was a perfect candidate.

You are correct in that you cannot go negative on the equity in the home in a reverse mortgage - ever. That is how RM's are structured. The number-crunchers do their work, and the insurance company/lender assumes the calculated risk that you'll die, or move out, before the equity is completely depleted. If you live much longer than their tables estimate, you are getting free money.

That said, I think it is a very unwise decision to take out a loan (that's what a reverse mortgage is) in order to get INTO more debt. Stupid, inane, and suicidal. But people should still be allowed to do it, and suffer the consequences.