Ask Terry Questions reverse mortgage when parents can’t pay the bills

reverse mortgage when parents can’t pay the bills

By Terry Savage on April 27, 2015 |

My parents r in their mid 80″s and have a reverse mortgage with little money left to use-they r concerned about what happens when the money runs out-how long will they b able to stay in the house and what if they cant pay the monthly fees? thanks Paula

Terry Says:   If they took a lump sum, they are obligated to pay the taxes, and all the bills, including condo assessments — and keep the house in good repair.  If they don’t have the money to do that, they should stay in the home as long as possible. Eventually, the lender will become aware of the situation and tell them they have to move.  But even if they are forced to move they can’t be asked for any money.  And if the home is sold for more than the balance on the RM, they will get the difference.

Or you could help them pay their bills to stay in the home if that’s really still the best solution.

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