Real Estate Blogging

As the cost of living increases, many seniors are finding that their retirement and social security checks just aren't cutting it anymore. Some choose to cash in on the hot housing market and move out of state to lower-cost areas. Others are discovering reverse mortgages that allow them to cash in on the equity without leaving their home and their loved ones. The US Department of Housing and Urban Development (HUD) has been providing a great deal of information about reverse mortgages for seniors and their families. Information includes calculators to determine how much one could borrow, counseling options, and a detailed explaination of exactly how reverse mortgages work. Many seniors have been able to use reverse mortgages to eliminate their debt, pay for prescription drugs and even vacations!

The downside of the reverse mortgage is for the children or other heirs. The way that a reverse mortgage works, is that payment in full becomes due when the person either passes on, or no longer lives in the home. In order for the children who inherit the house from their parents to actually keep it free and clear, they must pay off the reverse mortgage. Most people don't have the money laying around for this, and are forced to sell the property.

Should seniors disclose their reverse mortgage to their children who would someday inherit their home...and the burden of their debt?