There's a product called a reverse mortgage that accomplishes the same thing. Having the government offer this instead of foreclosure nullifies the "I lost my

There's a product called a reverse mortgage that accomplishes the same thing. Having the government offer this instead of foreclosure nullifies the "I lost my house because of high property taxes" argument, but there's no need for the interest rate to be especially competitive. If you can get a better deal on the private market, go get it.