Adding heirs to reverse mortgage....
My mother is over 62 and is married to a man who is not yet 62. She is requesting her children's help in obtaining funds for getting a reverse mortgage, she needs $12,000. Her children (before giving her money) want to ENSURE that this money never benefits her husband, who has treated her quite poorly and is a terrible manager of money. Once he turns 62, is there any way to PREVENT him from adding himself to the reverse mortgage? If he can add himself then he benefits, once she dies, and we don't want this. Hope this question makes sense. by petittcarljones from Bennington, Vermont. May 31st 2011
Richard Glover (rglover)
#35 ranked lender in Illinois - 69 contributions
There are so many issues here: Is there a trust set up to establish that her husband will not get the house? In a "community property" state, he as the husband, occupying the property almost automatically has rights of survorship regardless of how the rest of the family feels about mom's treatment. He won't be on the initial Reverse Mtg. but once he is 62 he has a minor chance of being added if they will qualify for a "streamline refinance." It could add the husband and he'd have only the ability to live in the house until he dies. I discuss the aspects of the Reverse Mortgage with many families and the reality is that it lets most people get access to their only asset (house rich, cash poor) but it means that the kids may not be able to keep the parents house after their demise. However, it makes it possible for them to live better whiile while walking on "god's green earth." Perhaps they will lose the house if they can't get a Reverse Mortgage...can they move in with you? Finally, if you don't want him to keep the house, do the following: help mom get the reverse on the condition that she create a trust with one of the famliy members as a beneficiary to her trust. Exclude her Husband from the trust and ultimately when the property is no longer her primary residence you will sell it, pay the bank any funds due, keep any overage and if you owe more than the sales price then no one is on the hook for the difference. But her Husband could wind up looking for a place to live. Complicated? Yes! Many people to talk to who understand all this? Not many! Contact me directly and I'm happy to help you without trying to be the one "selling" you!Richard Glover: www.rglovermortgage.com....www.reversemylife.com!
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
My suggestion is to stay away from the reverse mortgage all together. Have her take out a forward mortgage and have her put that money into an interest bearing account soley in her name and have the children as the beneficiary. This should not cost her more then $450 for an appraisal and all the rest of the costs can be rolled into the loan. I would recommend speaking to an estate planner as they can offer more tips on hiw to set this up to where it is safe, secure and reaping the best financial benefits.
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