Reverse Mortgage — loan is more than house is worth now
My wife’s mother is 89, living in a house with a reverse mortgage. The loan balance is way more than what the house is worth. What happens to her savings when she moves out of the house or passes away?
Terry Says
They take her house — nothing more!! The savings will get distributed to her heirs per her will, or the names on the accounts. Of course, as long as she can maintain the house and insurance, it is to her benefit to keep living there — and collecting the monthly check!
My dad lived in his condo til age 95 — the lender couldn’t believe he was still living there and sent people around to check. He had the last laugh. They got the condo, which we didn’t want!
