North, South Memphis hit hard by reverse mortgage foreclosures

Majority African-American communities in North and South Memphis saw more than 130 foreclosures result from reverse mortgage loans in recent years, a USA TODAY project has revealed.

The project showed many reverse mortgages failed in the aftermath of the great recession, with African-Americans in urban areas being hit the hardest. Lenders foreclosed on the homes after elderly borrowers, many near the poverty line, missed a deadline or tax and insurance payments, it said.

Areas of Chicago, Baltimore and Detroit were among the hardest hit, the project found in its review of 1.3 million loan records. But Memphis, a majority African-American city, also had communities slammed by reverse mortgage foreclosures.

Consumer advocates said the findings show “unscrupulous lenders targeted lower-income, black neighborhoods and encouraged elderly homeowners to borrow money while glossing over the risks and requirements,” according to the report.

Read more: https://www.commercialappeal.com/story/money/2019/06/17/north-south-memphis-hit-hard-reverse-mortgage-foreclosures/1431069001/