Opinion ID: 3149118
Heading Depth: 2
Heading Rank: 1

Heading: Reverse Mortgages.

Text: Before turning to the issues sub judice, we think that an explanation of the idiosyncratic nature of reverse mortgages may assist the reader. A reverse mortgage is a loan or line of credit available to a person over the age of 62 who has equity in real estate, typically the person's home. The loan provides the borrower with cash (usually in the form of a single lump-sum payment) and is secured by the borrower's equity in the real estate. There are no monthly payments; instead, the loan is due and payable in full when the borrower dies, sells the home, or no longer uses the home as her principal residence. See generally R.I. Gen. Laws § 34-25.1. The standard reverse mortgage has an additional feature: the underlying loan is typically on a non-recourse basis (that is, the borrower has no personal liability for repayment of the funds advanced). Put another way, the lender agrees to look exclusively to the mortgaged property for repayment. With this foundation in place, we confront the appellant's twin claims of error. We note, though, that the - 6 - reverse mortgage that the decedent obtained from Financial Freedom was cast in the conventional mold.