They have already been scammed into predatory loan. now they -want to do reverse mortgage to " get out of debt" (unsecured credit cards). My dad is drugged out of his mind half the time and my mom goes along with ANYTHING he says. I tried to create a budget for them do they could live comfortably within their means but they won't do it. I told my brother we really need to take over the finances because they clearly don't know how to manage money anymore. He lives in Md, and I am in SC taking care of them. They built this house 17 yrs ago and owed no one. Borrow do they can pay their credit cards. Paid cards note they have a mortgage. Got more credit cards. More they want to repeat the cycle, which will make me homeless and/or in debt! They have great insurance do they have NO MEDICAL BILLS. Thoughts?
Is bankruptcy an option?
As for a reverse mortgage, some people don't realize that that a reverse mortgage is a *loan* that will have to be paid back with interest and whatever fees are attached to this loan. And one has to qualify for this loan, thus you need good credit.... so tell your parents to forget about a reverse mortgage, they won't qualify.
Thinking about it, that last idea might not be such a bad one. You don't want your future to be dependent on the unstable behavior of your parents. That is a very bad situation to be in and I would be worried about it. Please let us know how it goes. They sound like they are still going down the road that got so many people in trouble.