“Why give my inheritance to the bank?” asks one daughter worried about her mother’s reverse mortgage.
While the answers can vary by lender, The Dallas Morning News replies by saying reverse mortgages are treated similarly to other debts.
“You have the option to repay the debt or relinquish the property that is collateralizing the debt, which in this case would be the home,” The Dallas Morning News says in a Q&A column featuring the question posed by reverse mortgage borrower’s daughter.
In addition, the lender will typically allot a certain amount of time for heirs to sell the property for repayment of debt, the news outlet explains.
“You are entitled to sell the home for whatever the market value is at the time and use the proceeds to repay the debt that was paid to your mother from the reverse mortgage,” the news source advises.
Read the full article here.
Written by Cassandra Dowell