I'm worried that my dad will lose his home by doing a reverse mortgage.

I do not know if this personal story would help ease your mind about reverse mortgage. My mother in law had parkinsons disease and was bedbound. I took care of her along with my husband at mother' in law's house. The conflict came up when the sister of my husband claimed that if her mom would stay in an assisted living, the house could be rented and the sister would get 1/2 of the rent. Well, then the idea came up to get a reverse mortgage from Fanny Mae Foundation. The bedbound mom signed it with a witness from the bank as the Notary public. They got the loan, the sister was given half of her share, and was sold at the time of mother in laws's death, and paid the reverse mortgage, and whatever was the equity left, was given to the children. What I knew bank who issued the reverse morgage loans will keep the property until the owner passed away. For that reason, your dad can live there for as long as he lives. You can ask the bank where your dad applied for reverse mortgage for better understanding of reverse mortgage. The law can change from time to time. Good luck.

I understand that a reverse mortgage is a way for a person to live in their own home until they die. The bank pays them a fixed sum each monhth until they die. After that, the bank owns the property. Heirs to not participate in the equity. The bank owns the property.

ok, we have reverse mortgage on Mom's house here in Calif. thru Wells Fargo. The "refinance" amount is not set to eat through the entire equity (unless financial crash plummets the value). It is set up so that even if Mom eats through all the equity, she can remain in her home (though without income from RM, it's rather pointless guarantee) Even with both cycles of our loan, it will only impact 1/2 mom's equity, should she die or be placed in a home permanently. There is a waiting period to see if she'll return to the home, then the home must be sold, the loan paid off. The remainder is "inheritance."

Sure someone with real knowledge will pipe in. Perhaps you might have to wait until advance dementia or actual nursing home placement to bring your father to Greece, if indeed you can transport him.

Like with other financial transactions, reverse mortgages can be good or bad depending on who holds the mortgage. But also like other mortgages, you can still sell the house; tho this may mean losing money given the fees that are paid up front.

Note too that the mortgage lender doesn't own the house, but they do have a mortgage on it. So whenever the house is sold, they must be paid back first before any equity can remain, just as with a regular mortgage.

AARP has quite a lot of resources available about reverse mortgages here:

http://www.aarp.org/money/personal/reverse_mortgages/

Hope this helps!

Hi Gina-Is it possible to speak wiith someone like a financial advisor, someone from AARP, or someone affiliated in your local chapter of elderly affairs?

Since I do not know if your dad was fully compitent at the time he did reverse morgage, it becomes difficult to know the complete story. By the way~was there POA set up over your dad's estate?

I have read some of the feedback already, and there are also some valuable tools for you to work with.

Good luck!

Hap

Thanks to all of you for your responses and information you submitted to me...there is alot for me to learn on this and I appreciate your taking the time to write.

be well be happy all,
Gina