Even though an entire family may be involved in the discussion of whether to obtain a reverse mortgage, experts find that heirs of prospective borrowers are more concerned about losing their “presumed” inheritance than learning about the terms of the loan, reports The New York Times.
Elder law and reverse mortgage experts in the article say they frequently encounter instances where the adult children of potential reverse mortgage borrowers are “openly opposed” to the idea of their parents spending away their inheritance.
“A lack of communication can lead to a rude awakening for adult children who still live at home and don’t realize what a reverse mortgage will mean after their parents die,” said Deborah S. Ball, a New York elder law lawyer, in the article.
Frank Melia, a mortgage planning specialist with United Northern Mortgage Bankers in Levittown, N.Y. told The New York Times that he has noticed more adult children open to the discussion of their parents borrowing against their home equity since the recession.
But the same statement continues to come up, he says, of adult children telling their parents: “You’re spending my inheritance.”
“Sometimes there’s just no getting through to them,” he said in the article, “because they’re just being selfish about their inheritance possibility.”
Written by Jason Oliva