Reverse mortgage

In my occasional web surfing, looking for information and some opportunities, I often encounter the phrase reverse mortgage as one source of additional cash. And I noticed that this kind of credit facility is usually offered to the elderly or the seniors, especially the retirees since it does not require repayment really from their part, thus leaving them without worries in their financial management.

But are reverse mortgages really advisable? It really depends on how you look at and how stable is your present financial standing.  Searching for  reverse mortgage information I found in this type of loan facility, the borrower, usually an elder, is offered a loan with his lien on his property as the collateral.

Once approved, the borrower receives the money and spends it in whatever way he pleases. He need not worry about amortization of his loan, because he won’t be paying it. When the buyer passes away or leaves the house for some reason, the property will be sold and from the proceeds, his loan availed via reverse mortgage will be paid.

So do you think it is a good credit facility? I guess so, if the borrower does not have any relatives who will be running after the property.