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["Lisa K.V. Perry" <lisakvperry AT gmail.com>]

On Tue, Nov 11, 2008 at 4:18 PM, EarthNSky <erthnsky AT bellsouth.net> wrote:

> I know Lisa and others have mortgage experience.  I keep seeing those
> ads for a reverse mortgage.  How exactly does that work and what is the
> downside? Bank gets the property when you die, right?
>

You have to be minimum age 62. This was a niche market that I thought about
becoming an expert on had I stayed in the business, but I did not. Maybe
down the road I'll get back in it and only do reverse mortgages, who knows.

Found a couple sites to answer your questions, but if you're thinking for
you in particular, you and Ron are too young.

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

*Who can get one?*


   -

   You must own your home, and generally all of the owners must be at least
   62 years old.




   -
>
>    If you have any debt against your home, you must either pay it off *
>    before* getting a reverse mortgage or - this is what most borrowers do
>    - use an immediate cash advance *from* the reverse mortgage to pay it
>    off. If you don't pay off the debt beforehand, or do not qualify for a 
> large
>    enough immediate cash advance to do so, you cannot get a reverse 
> mortgage.
>



> *When do you pay it back?*
>
>    - When the last surviving borrower dies, sells the home, or permanently
>    moves away. "Permanently" generally means you have not lived in your home
>    for 12 months in a row.
>
>
>    - You might also have to pay it back if you fail to pay your property
>    taxes, fail to keep up your homeowner's insurance, or let your home go to
>    waste. But if you do, the lender may be able to make extra cash advances 
> to
>    cover these expenses.
>
>    Just remember, reverse mortgage borrowers are still homeowners and
>    therefore are still responsible for taxes, insurance, and upkeep.
>
> http://www.reverse.org/faqs.htm

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