Very interesting Phyllis. I did a bit of research and discovered the Federal Trade Commission issued a report on reverse mortgage. The link is:

http://www.ftc.gov/bcp/conline/pubs/homes/rms.shtm

Phillis.

I used to sell reverse mortgages. They can be a wonderful thing for some, not for others. HUD regulated counseling is required, it should answer all questions. The major downside is it will leave less for the heirs to divvy up. If your financial need is such that the heirs are not a major consideration, look into it. If you plan to sell or move in the next few years, a reverse mortgage is likely not for you. If you have a mortgage, lots of bills, home equity lines out of control, fixed income not large enough, over 62, a reverse mortgage may be able to help you a lot.

I used to work with lenders about to foreclose on the property and often we were able to save the house. If you have any other questions, I'll be happy to answer them.

BTW, single wide trailers usually don't qualify, double wides maybe, probably not, older homes, maybe, condo's PUD's, probably. An FHA appraisal is required, and they can be picky. It is an FHA insured loan, the homeowner never pays it back as long as they live in the home. Your income has no bearing on qualifying for the loan.

I have a question. If you die in the next few years, does the equity on the house belong to the lender or can it be passed on to heirs.

Lin, they said that you retain the deed to the house. Heirs have 12 months to sell or if an area difficult to sell, at least have an active contract. The man was very knowledgeable and his presentation was excellent. Donna, I will have to see but this is or has been changed. All that George said is true. I believe there may be some differences in states though.Obviously, there should be much thought about this.

As for heirs, let's be honest. While it's nice to leave them a lot, you do not have to worry about them and not be able to pay your bills. People must do what is best for them. The heirs, should not expect to be taken care of; they should be responsible for themselves. You and your spouse have paid for the home and the money in it was from their hard work. This should be a persons last concern. If money is needed for medical treatment, medicine and it can be to your advantage (not the heirs) then, you should go for it. You will have a place to live. Ever check prices for assisted Living situations? It will shock you! if you sell your house and the $ goes, and you outlife the $, what then? Will your heirs take care of you?

I agree Phyllis that paying your own bills is the number priority.

It would just be good to know who has the deed. If (god forbid) one got run over by a mac truck and killed in a month, it would be good to know if the house is still part of your estate, or if the company who just gave you the deal gets it. Just interested in how the deal works. How does the company make money? I know in Belgium there is a reverse mortgage deal where you sign over your house and then pay rent. You can live there until you die, but the house belongs to the company, not you and therefore not your estate. You take a risk that you will live long enough and be able to live in the house long enough for it to work out financially.

I would just be sure I know all the facts before signing up.

I see the ads on TV all the time, it's not allowed here in Canada. They basically put a lean on the property so when you, your dependents ot whoever sells the home they get payed back with interest. So if you haven't anyone to leave it to you might as well get some cash and stay in your home.