“If it sounds too good to be true....”
I have been suspicious of reverse mortgages, since I saw the first commercial years ago.
They just smacked of ‘scam — buyer beware’.
Very simple, a financial scheister goes out and evaluates the situation loading everything in their favor.
Depending upon multiple factors, ie: mental health, equity, etc., etc., they make an offer. You get the idea.
The buyer never loses.
Sad but true, a lot of times the seller doesn't care anymore or doesn't know better.
We checked them out. The fine print gives the lender 50% of the appreciation when the house is sold, besides all the other problems.