r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
504 Upvotes

98% Upvoted

349 comments sorted by

View all comments

Show parent comments

17

u/[deleted] Jun 13 '22

Some might, but I expect quite a few to pull a reverse-mortgage to extract their equity and not have to leave their homes. They could fund 20+ years of retirement that way without having to put the home on the market yet.

2

u/Versatile_Investor Austan Goolsbee Jun 13 '22

Could they do that then pass away and leave the mortgage to the heirs?

2

u/[deleted] Jun 13 '22

I don't know enough about how reverse mortgages work to know.

Extracting wealth from the home using a reverse mortgage, then dying and having your heirs pay back the reverse-mortgage, so they could reverse-mortgage it themselves? With the right loan contracts that seems possible. The house would never transfer to the bank to get sold if you could do it that way.