If you have a reverse mortgage and you pass away, will your children profit from the sale of the home or would only the bank.

Asked by Lenora, Victorville, CA Tue Dec 22, 2009

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Michael Magaw’s answer
Michael Magaw, Agent, Torrance, CA
Thu Dec 24, 2009
A reverse mortgage is just another lien, like any other loan. You, or your estate, should never give up ownership of the home. But the equity you may now have will be reduced by the terms of the reverse mortgage (payments made to you, loan fees, etc.).

You should consult with an accountant, CPA, income tax prepareer, financial advisor, or attorney, if you are going to make these types of decisions. Do not depend solely on the advise of your loan officer or answers from this forum.
0 votes
Truliatracy, Renter, United Amigos, Mesa, AZ
Sat May 11, 2013
A Reverse Mortgage is designed to be the last loan you may ever need. It works opposite a traditional mortgage. Rather than making monthly payments to pay off a loan as is the case with a traditional or forward mortgage, with a reverse mortgage the equity in your home pays you. Since there are no monthly payments, there is no income or credit qualification required. I have a reverse mortgage which name is reverse mortgage lenders direct .I think they will help you to know what is reverse mortgage.

8 votes
Mack McCoy, Agent, Seattle, WA
Tue Dec 22, 2009
Not the bank.

A reverse mortgage allows you to use the equity in your home while you're alive. When "you" pass away, your children can either sell the home and keep the proceeds after paying off the mortgage, or they can refinance and pay off the mortgage and keep the house.

I don't think your children will begrudge your using the equity in your home. The alternative, if they wish to preserve their inheritance, would be to subsidize your expenses.
0 votes
The Hagley G…, Agent, Pleasanton, CA
Tue Dec 22, 2009
It would depend on how much equity you had in the home. Any excess would got to your estate or beneficiaries.
0 votes
Fran and Mark…, Agent, Yardley, PA
Tue Dec 22, 2009

Any equity remaining after paying off the mortgage,costs of sale and any other property liens would go to your estate to be distributed according to your directives.

Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road
215-321-3307 DIRECT
215-208-7169 Cell
Web Reference:  http://www.franandmark.com
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