Quote:
Originally Posted by Moneyguy1
A word of warning.....If the individual goes into a nursing facility for (30 days if I recall accurately...it has been a long time since I worked on one of these cases) then the house MUST be put on the market. I had one individual who would not listen and wound up dying in the County Home virtually penniless.
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Correct as I understand it. However it should be noted that you don't have to sell the house until you or the LAST Survivnig borrower no longer occupy the property for at least 12 months.
Also, you only pay back the loan amount or the market value of the home, which ever is less.
You can receive the funds as a lump sum, monthly income, or 1st mortgage pay off...if small enough.
Probably the best way to take the loan is with a "period certain payout..ie 10yrs vs lifetime payout. This limits the amount borrowed, and you get a higher monthly income and can always do another Reverse mortgage in 10 years if the house has continued to go up in value.
It really can be a viable planning tool. Best for people over age 70 with little other assets.(imho)