Reverse-Mortgage Rules May Be Changing for Spouses
The AARP Foundation got a win recently in its lawsuit against the Department of Housing and Urban Development, reports The New York Times blog Bucks. HUD rescinded a 2008 letter that suggested widows and widowers would have to pay back in full reverse-mortgage loans they weren’t listed on, even if the house’s value had gone down.
The lawsuit is not over, though. The foundation hopes that a judge will confirm that HUD cannot ever force a widow, widower or heir to pay a reverse mortgage lender more than a home is actually worth, whatever the balance may be on the mortgage.
It also wants to establish surviving spouses’ right to stay in the home if they so choose, even if they weren’t party to the original reverse mortgage.
The article, “Good News for Spouses of Reverse Mortgage Holders,” covers how these things might be accomplished and what the consequences could be.
Leigh Ann Otte is a freelance writer who covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.