I spoke to two very intelligent people today who both thought that the Revese Mortgager lender "gets" the house after the borrower passes away.
A Reverse Mortgage is like any other mortgage. The owner retains ownership. the lender puts a lien on the property. When the loan is due (after death or sale) any excess equity belongs to the borrower or their heirs,
I have spoken to a few seniors who also believe that to be true. Reverse mortgages are a great option for those with equity.
I'm sure mis-information will abound regarding reverse mortgages especially as the credit crisis continues to unfold.
Ellie,
Thanks for the comment. Feel free to subscribe. I post every day.
Michael Pinter
Joe,
I think you are right. Thanks for the comment. Feel free to subscribe. I post every day.
Michael Pinter
I know some unhappy kids ( in their 50's) because their parents did a reverse mortgage.
They don't think there will be anything left for them after their parents die.
And they understand that the bank doesn't get the house.
I just wish my parents were still here to DO a reverse mortgage.
Brenda,
Thanks for the comment. Unfortunately, I have met many kids who have convinced their parents not to take a RM, when it was clearly in their best interests. Feel free to subscribe. I post every day.
Michael Pinter
Comments(6)