Has anyone you know used a reverse mortgage from FinancialFreedom.com?
So, I have a theory as to how this company makes money. What they do is go through your personal belongings and make an estimate as to how much it is worth. They then give you a loan based on that amount and tell you that you have to keep those belongings for a certain period of time (the commercial says something to this effect in its fine print but I can’t read small print that fast). Now, here is how they make money. They only give these loans to people over 62 betting that the person will pass away before the loan is repaid. They then liquidate the persons assets to repay the loan (which probably has an incredibly high, almost insurmountable interest rate). Now that is of course assuming that they don’t give the person’s family a chance to buy back all of their family heirlooms to repay it.
So, is my theory right? Does anyone know if this is actually how they operate?