We received a question recently asking about “[tag]inverse mortgages[/tag]” and how they differ from “[tag]reverse mortgages[/tag]”.

At the outset lets be clear: [tag]inverse mortgages[/tag] and [tag]reverse mortgages[/tag] have no connection with each other.

The inverse mortgage is not really a type of residential mortgage at all. Rather, it is a multi-level marketing strategy put forth by a company called Brixdale that involves combining bi-weekly mortgage payments with referral marketing. (Last I checked, the Brixdale company website wasn’t working.)

Top results from a Google-search for the term “inverse mortgage” are mostly discussions of whether the idea is legitimate or a scam.

Rather than get into a lengthy discussion of what an inverse mortgage is, I’ll refer you to this excellent summary at MortgageNewsDaily.

But please do not confuse inverse mortgages with legitimate reverse mortgages.

Social tagging: Reverse Mortgage Scams

A Few More Related Articles of Interest:

Inverse Mortgage

Inverse Mortgages R.I.P.

Time to Consider a New Name for “Reverse” Mortgages?

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Met Life Predicts Surge in Reverse Mortgages