Will my Children still be able to Inherit My Home?

Reverse Mortgage FAQ >>> Will my Children be able to Inherit my Home?

The worst scenario is that there won’t be any equity left once the homeowner passes on. However, it is likely that if the money is used cautiously, and interest rates and real estate values don’t hit a slump for a long period of time, there will most likely be some equity available but there is no guarantee. Any equity remaining in the home once all obligations are met to the lender, are profits your heirs will be eligible for.

It is recommended that the children of the applicants are aware of the process their parents are undertaking with their property.

Another positive fact about reverse mortgages is that if the housing market happens to be in a decline period and the sale of the house does not produce enough money to pay off the reverse mortgage, the bank has to absorb the loss. The difference between the sale and the amount owed is not a burdon to the heirs to the estate.