One of the most important documents in the reverse mortgage loan application is the non-borrowing resident (NBR) notice. It is a notice to any resident in the home who will not be on the reverse mortgage that explains what will happen in the event the person on the reverse mortgage no longer resides in the property. The NBR, upon the the death of the borrower (or change of primary address), can not assume the reverse mortgage. Second, in those same events, the reverse mortgage is due and payable (how soon depends on the lender).
These are key points to consider when taking out a reverse mortgage. Currently I am consulting with a 65-year old widow, who has a physically handicapped daughter. She wants to extinguish her current mortgage with a reverse mortgage "so her daughter has a place to live forever" (her daughter is in her 40's). I clearly pointed out that cannot be the case. Fortunately she has other assets, and is making arrangements with an elder-law attorney to plan for this properly.
A good reverse mortgage specialist should be aware of the special issues that occur when folks age.
For more information on reverse mortgages, or to find out how much you can qualify for, visit: www.topflitereverse.com/florian
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