Seniors Face Foreclosure After Being Sold Reverse Mortgages

Leroy Roebuck, 86, of Philadelphia, is fighting to keep his home of at least 55 years where he raised all his kids.

JASPER COLT, USA TODAY

Reverse mortgage commercials air regularly on television, but USA Today has an investigative article, which shows that seniors are facing foreclosure because of these reverse mortgages. (See Video Below)

USA TODAY found that reverse mortgages end in foreclosure six times more often in predominantly black neighborhoods than in neighborhoods that are 80% white.  

Even comparing only poorer areas, black neighborhoods fare worse. In ZIP codes where most residents make less than $40,000, the analysis found reverse mortgage foreclosure rates were six times higher in black neighborhoods than in white ones.

The foreclosure disparity resembles a more familiar scenario from the late 2000s, when subprime lenders targeted specific neighborhoods with risky loans doomed to fail, according to the nation’s lead reverse mortgage researcher.

Read the full article here