Reverse Mortgage Question

No.. it is not true.. the home belongs to your father... if he passes it becomes part of his estate... the estate has 1 year to decide to either pay off the outstanding balance, or sell the home to pay off the balance... or just give it back to FHA... let's say the home is worth $100K but the balance is $120K... you're better off just handing the keys to FHA... the estate will not be charged the $20K negative... if the home is worth $150K, and the balance is $100K, then you have up to 1 year to do whatever you wish.. Sell it, pay it off, keep it... it's all up to you.. but if you just give it back to FHA, you're walking away from $50K equity... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Not True. William explained it correctly!

That is not true!! Your father's heir(s) will have first option to refinance the mortgage into their name if they want to keep the house or to sell the house if they desire to go that route. No different really than if it were any other kind of mortgage. Please give me a call to discuss. Tommy Peoples, Branch Manager, Southwest Funding, Daphne, AL, 877-634-2390.

Per inheritance...if there is any equity left you can certainly pay off what is owed and retain the remainder after expenses.Remember, a reverse mortgage is a mortgage loan in reverse. Borrower is getting the deductions of payments againstequity based on an interest rate borrower received at the time of the loan. If all the equity is used up FHA allows borrowerto retain the home until death and then it reverts to the bank or FHA as William said.