With all the celebrity advertisements for reverse mortgages...it seems to be a viable idea. As I understand it the borrower's obligations are

1. Pay the real estate taxes
2. Pay the homeowner's insurance
3. Live on the property as a primary residence

I was just told a story about a local couple that put a reverse mortgage on their property. Apparently the husband died, and the bank foreclosed on the wife.

I am wondering if it had anything to do with the way title was held. You can hold property as joint tenants with right of survivorship. In which case the decedant's interest is transferred to the other party instantly unpon death without need of a will or probate of an estate.

The other method is to hold title as tenants in common without right of survivorship. I n which case the decedant's interest does not pass automatically to the other party. It needs to go through probate and pass title by an intestate or testate succession.

If any of you are considering a reverse mortgage...make sure you are represented by an attorney, and that all such questions are explored with the attorney.to post a reply: login - or - register