Re: Reverse Mortgage

[Paul Collins]

Can a relative of a deceased person who had a reverse mortgage sell the property? Is there something to look for in the contract language or is it pretty much a dead issue? No pun intended.....

[Will Barnard]

Perfect answer jrundy!

I am of the opinion that reverse mortgages are banks "new" way to steal money and assets from the uninformed, particularly, the elderly. They charge massive amounts of fees and the homeowner has nothing left to pass down to their children/grandchildren/etc.
There may be some instances where a program such as this would be beneficial, but I feel, from an investor's standpoint, that it should be a last resort. Let's inform our parents/grandparents/elderly/etc. and offer them more viable choices. Granted, investing is not for everyone, but it is certainly a better choice financially to take equity from the home and invest in cash producing assets to generate the income needed. Then, when they pass, they have assets to hand down and do not run the risk of outliving their home equity and being placed in the streets by the lender who sold them the reverse mortage.