Good afternoon. More and more retirees are thinking about purchasing a reverse mortgage. This is generally beneficial to them, but what are the advantages and disadvantages of a reverse mortgage for heirs?

Hi. Advantages include the ability of the elderly property owner to obtain additional funds to cover their financial needs and improve their quality of life. However, a disadvantage for heirs may be a restriction on receiving an inheritance, since a reverse mortgage requires repayment from the sale or transfer of the property. Heirs should be careful and evaluate the financial implications before making a decision. By the way, there is an interesting article on Pros and Cons of Reverse Mortgage on the subject of reverse mortgages.

The heirs receive practically nothing from the lender, but in order to get their property back in full, they have to buy out the collateral