If I get a Reverse Mortgae and my wife is under 62 when I die, is the loan due?
Answer:
All I know is that this is one of the newest legal scams to get people to part with their hard earned retirement savings! Please check out Suzzie Ormans advise on this subject as she explains the con very well, and will give you other and better ideas as to how you can accomplish the same thing only better. PLEASE research this thoroughly before you do anything!
Suze Orman, does indeed endorse reverse mortages, however, she does say its not for everyone and that people need to know their option
Yes the loan is due if she is not currently on the loan. In fact in order to do a reverse mortgage your wife will have to come off of title in order to complete the reverse mortgage. If your wife is close to 62 you might want to wait to do the loan. I have had some people take out a special mortgage insurance so that the loan would be paid off if you happen to die before she turns 62. It's basically a life insurance policy that covers just your mortgage.
The one thing you have in your favor is that in California is that when your wife turns 62 you can refinance your reverse mortgage and add her to the loan so that you are both protected until you BOTH pass away. Reverse mortgages are based off of the youngest borrowers age. Since home values in California appreciate at such a good rate it should not be a problem to add your wife when she is old enough. You may even get some more money out depending on your situation.
I specialize in reverse mortgages. If you would like for me to run you through different scenarios to let you know exactly what can happen please feel free to contact me.
Thanks,
Brandon
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