[Challenger]

Originally Posted by villagetinker

Along with all of the above, take a very careful look at what happens when you die. Back up North, during the housing boom, a neighbor took out a reverse mortgage for $240k. Within 2 years the money was gone, and a few months later she died, unfortunately so did the housing market....Now the house was worth LESS then the loan, and the bank wanted the difference (about $40k). They went to collect from the estate, AND from the 'heirs'!!!! This turned into a real mess. The house sat vacant for 3 years, and may very well still be vacant. The heirs had to hire lawyers, and I heard a rumor they had to declare bankruptcy to avoid paying the bank. The heirs will never get the house, which was the intent of the person that lived there. I guess they did not understand the reverse mortgage.

So just my suggestion, ask your lawyer and financial advisor to very carefully go over all of the possible scenarios to make sure you are not leaving a financial mess for your heirs.

from your discription, I dont believe that this case was a Reverse Mortgage.
Probably an equity loan.