The Chicago Tribune offered its readers some need-to-know advice when inheriting a home from a parent that has taken out a reverse mortgage.
Claiming that many aging homeowners may have opted to obtain reverse mortgages during the economic crisis, the Tribune article outlines several options heirs have when they’ve inherited a home that has a reverse mortgage.
The Tribune informs its readers that heirs can choose to pay off the loan if they want to keep the property, using either their own finances or via refinancing into their heirs’ names, or can opt to deed the home back to the bank holding the reverse mortgage on the property.
“In some cases, though rare, the heirs choose to abandon the home and the estate becomes property of the bank,” said Neena Vlamis, president and co-owner of A and N Mortgage, in the article. “It’s important that the heirs discuss their options with a financial planner or mortgage professional to determine what makes the most sense financially.”
Written by Jason Oliva