Legal Question in Real Estate Law in Texas

Reverse mortgage

A friend of mine owns property in Texas with a manufactured home that his mother is living in. She is 64 years old, gets SS, and currently has been making the mortgage payments. She feels that she should be taken care of and not have to make payments. His mom wants to get a reverse mortgage on the house. Mortgage is in his name and has $30,000 still owed. How would someone in her situation qualify for a reverse mortgage? If he were willing to let go of the property, what could be done to make it possible for her to qualify, and what would be the pro's and con's of going this route for both parties? His mom has taken advantage of him greatly in the past and I don't want to see him get taken advantage again by her.


Asked on 4/16/08, 6:49 pm

2 Answers from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: Reverse mortgage

Only the owner can get a reverse mortgage. If mom does not own the premises she cannot get a reverse mortgage or any other mortgage.

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Answered on 4/20/08, 3:11 pm
Kathryn Perales PMI Oil Tools

Re: Reverse mortgage

First of all, you have to be 65 to get a reverse mortgage. She's too young still. You also must own the property outright. She doesn't own it. With a reverse mortgage, you can only get an amount up to a certain percentage of the value of the property, which may be partially based on your age.

If son is willing to give or sell the property to her, and the reverse mortgage would produce enough proceeds to pay off the existing mortgage and pay the son his sales price, then it might work out for the mother. The bank/mortgage company offering the reverse mortgage will insist that it get the first and second lien position, so the existing mortgage must be paid off.

If he decides to give the property to Mom, or sell it to her for less than fair market value, there may be gift tax consequences to him. He cannot retain any ownership interest in the property, since he is not yet 65.

If this is something he wants to do, then he and his mother need to go meet with a bank or mortgage company that offers reverse mortgages, and learn what their options are.

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Answered on 4/17/08, 9:43 am


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