Legal Question in Wills and Trusts in California

Re: Reverse mortage

Howdy:

A reverse mortgage isn�t really a loan, so much as it�s a sale with the seller keeping a right to use for a specified period.

You need to read the terms of the deal. Usually, the borrower/seller will get a lump some of cash � about the value of the house, and will also retain a life estate in the property. At the time of death, there is no balance to be paid off, and title to the property automatically transfers to the lender/buyer.

Again, read the agreement or offer carefully. It will give you all the details of the deal. Any lawyer can review the documents for you. It shouldn�t cost more than $100-150 for a review and opinion. And, it would clear up all your questions about the specific deal.

rkr

Re: Reverse mortage

You can never owe more than the value of the home at the time the loan is repaid. Reverse mortgages are generally "nonrecourse" loans which means that in seeking payment, the lender does not have recourse to anything other than your home, (not your income, your other assets or your heirs). If you or your heirs sell the home in order to pay off the loan, the debt is generally limited by the net proceeds from the sale of your home.