Get Legal Help Today
Secured with SHA-256 Encryption
My neighbor struggles on her income, she owes nothing on her home. Is a
reverse morgtage a good idea. Thank you for your help.
Asked on February 2, 2018 under Real Estate Law, Michigan
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
This is an economic and estate planning question, not a legal one: reverse mortgages are legal, valid, and enforceable, so it comes down to this person's situation and whether it makes sense for *her*. While this person should consult with a financial planner or adviser about her specific situation, they can be a good idea if you have enough equity in the home that you will likely pass away (based on equity vs. spending vs. life expectancy) before the reverse mortgage comes due, so you can make good use of the money without worrying about the consequences, and if you don't have family you hope to leave the home to. Conversely, it's often a bad idea if you are likely to outlive the money from it or want to leave the home to descendents or a significant other or other beneficiary.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.