97yr old mother’smother’s property taxes
My second question about my mother is, she lives in Montgomery county Pennsylvania and I pay her property taxes. At 97yrs old does she still need to pay property taxes on her reverse mortgage home.
Terry Says
Yes, that is part of the condition of her Reverse Mortgage — she must pay for property taxes, insurance, and upkeep. If she took out the RM years ago, it’s likely that her house has very little equity left. But that’s ok! If she lives long enough and stays in her home, getting a monthly check, she will “beat” (or has already beaten) the actuarial tables. At this point the lender is taking the risk — if she lives to 100, because it’s now “their” money she is getting each month! But don’t feel bad for the lender, since they are insured against this rare loss because of longevity.
This is exactly what happened to my father, who died at 96 with a RM. They kept coming out to see if he was really still living there! And he did until the last few days of his life!
