About

San Francisco Real Estate

Sellers

Buyers

San Francisco Real Estate News

TIC's / Condo Conversions

Resources

Real Estate Q&A

REVERSE MORTGAGES

Question: I've been looking into a senior citizens reverse mortgage although I am only 72. My survivor's pension was recently cut drastically by $1,300 per month by my late husband's employer and there is nothing I can do.

A speaker at the local senior citizens center explained reverse mortgages. They sound pretty good. I can receive $762 per month lifetime in my situation. That will greatly help. However, my mother and father lived to 86 and 94. If I live too long, will my son and daughter have to pay if my reverse mortgage balance exceeds my home's value when I die?

Answer: No. Senior citizen reverse mortgages are nonrecourse. That means your home is the reverse mortgage lender's only security for repayment. If you live to 120, the lender's sole recourse is to sell your home after you die.

If the reverse mortgage balance exceeds the home's market value when you die, too bad for the lender. However, as usually happens, after the owner's death and the home is sold, the excess proceeds go to the heirs.

The special report, "The Whole Truth About Reverse Mortgages for Senior Citizen Homeowners," is available for $4 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-800-736-1736 or by download at www.bobbruss.com.