Reverse Mortgages: How to Avoid a Reversal of Fortune

Editor's note: This is a special alert from FINRA -- Financial Industry Regulatory Authority. It has been republished for TheStreet.com readers.

If you are in your sixties, and own your home, chances are you have heard about reverse mortgages -- or will soon. Reverse mortgages can be helpful to homeowners who want to stay in their homes but are having trouble keeping up with their mortgage payments, or who have no other source of funds to pay bills or meet unexpected expenses. But as more Americans near retirement age, some financial institutions are aggressively marketing reverse mortgages as an easy, cost-free way for retirees to finance lifestyles -- or to pay for risky investments -- that can jeopardize their financial futures.

FINRA is issuing this Alert to urge homeowners thinking about reverse mortgages to make informed decisions and carefully weigh all of their options before proceeding. And, if you do decide a reverse mortgage is right for you, be sure to make prudent use of your loan.

What is a Reverse Mortgage? ...