The Boston Globe reports that heirs of reverse mortgage holders could suffer, since reverse mortgage companies are threatening heirs with foreclosure unless they pay the mortgages in full.
Read the Boston Globe article: Heirs of reverse mortgage holders may inherit the pitfalls, too.
Under federal rules, survivors are supposed to be offered the option to settle the loan for a percentage of the full amount.
Instead, reverse mortgage companies are increasingly threatening to foreclose unless heirs pay the mortgages in full, according to interviews with more than four dozen housing counselors, state regulators, and 25 families whose elderly parents took out reverse mortgages.
Protect Your Heirs
Financial planners have a number of methods of protecting your heirs. Whether you have a reverse mortgage or not, it could be a simple matter to protect your heirs from foreclosure on the inheritance you leave them.