Reverse mortgage foreclosure rate: 6x normal
Dave Ramsey states the foreclosure rate on reverse mortgages is 6 times the normal foreclosure rate.
Snapshot · The Ramsey Show
A Bigger Paycheck Won't Fix Bad Money Habits
Explore episode
Jul 14, 2026
Where this was said
Reverse Mortgage Warning — Susan in Flint
At 2:00:40 · chapter starts 1:58:20
Susan's family is stretched caring for their 86-year-old mother, who has early dementia, a tight budget, and siblings who argue over every financial decision. The idea of a reverse mortgage comes up because Mom has equity in her home. Dave is unequivocal: reverse mortgages foreclose at 6 times the national rate and he refuses to recommend them under any circumstances. He'd rather see the house sold outright than put in a reverse mortgage. His practical solution for a likely short-term care window: pool $500 to $1,000 a month across the 6 children — the multimillionaire brother should lead — rather than trigger an expensive and predatory financial product. Dave also delivers a personal message to the siblings not doing the day-to-day work: shut up, support the one who is, and don't criticize from the sidelines.
Reverse Mortgages: An Absolute Nightmare
The foreclosure rate on reverse mortgages is 6 times the national average. Dave refuses to recommend them under any circumstances. Before even considering tapping home equity, the family of 6 siblings should pool $500–$1,000 a month — and the multimillionaire brother should lead the way.
No will = home lost for widow
A widow discovered that without a will, Texas state law split her paid-off home 50/50 between her two daughters, leaving her with only the right to live there.
Similar snapshots
$13K MRR with $0 marketing spend
Bhanu grew SiteGPT to $13,000 monthly recurring revenue entirely through organic channels, spending nothing on paid marketing.
1 million website visitors total
More than 1 million people have visited SiteGPT's website since launch in March 2023, all through organic channels.
90% of Google traffic from free tools
Approximately 90% of SiteGPT's Google search traffic comes from the free tools Bhanu built, not the main product pages.
Sold first SaaS for $250,000
Bhanu sold his first SaaS product, Feather, for $250,000 so he could focus fully on the faster-growing SiteGPT.
$500K total revenue since launch
SiteGPT has generated approximately $500,000 in total revenue since its launch in March 2023.
SiteGPT LTV ~$1,700–$1,800
The average customer lifetime value for SiteGPT is approximately $1,700 to $1,800, which Bhanu considers unusually high.
50,000 monthly visitors
SiteGPT receives around 50,000 visitors per month, of which about 200 convert to leads and 60 start free trials.
SiteGPT reached $10K MRR in month 1
SiteGPT hit $10,000 MRR within its very first month of launch, driven largely by early traction in the AI chatbot space.
Stuck at $2K MRR despite downloads
Despite strong download numbers, PropGPT could not push past $1,000–$2,000 MRR due to poor product retention.
