Scarier than Betting the Horses......

Originally Posted by Secretariat

actually a better idea is to take out a mortgage or refinance, that way you do not sell your house while you are still living in it. the relatives get a chance to decide if they want to keep the house, and further, some may want to live where they grew up when the older person passes. reverse mortgages are by their very nature dangerous. they are ways to get people to commit to a sales price before the sales price of the surrounding homes are known. you could agree to a price in 2005 and in 2010 the price could have doubled due to inflation or a general increase in damand. not to mention the psycological effects of having title to your home all your life and then suddenly your are a defacto renter. bringing a stranger into partner with your grandparents in the title to the family home is not a good idea. get asecond mortgage instead, do not release the title or rights to the title of your home to anyone ever.

Well if you take out a mortgage or refinance then you have a monthly payment. With reverse mortgage you do not have a payment at all. This is the key to the entire thing. Reverse mortgage is the same as a refiance. But, the lender gets the money back from the sale of the home, any short sells HUD makes up and the title goes back to the family.