Wednesday, December 05, 2012

Surviving spouses under 62 are losing homes that had reverse mortgages

ABC News is reporting that spouses of seniors who pass away after taking out reverse mortgages are sometimes losing their homes if the spouses are under 62.  It appears that the spouses must come up with the cash immediately or the house can be sold right out from under them, even after death notices appear in the newspapers.

The story by Jim Avila and Serena Marshall is here

In some cases, refinancing options are possible, but apparently only when the spouse turns 62.

It would be interesting to follow what is happening with same-sex spouses (even if over 62).

A story posted here March 29, 2011 indicates that HUD rules promulgated then could be complicating the problem.  
A house belonging to a trust normally cannot get a reverse mortgage.  

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