If you are the son or daughter of a senior who is 62 years old or older, you owe it to them to be familiar with the facts regarding Reverse Mortgages. The number of Reverse Mortgages was up over 80% in 2006, and it is anticipated that in 2007 the popularity of these mortgages will increase exponentially.

With a Reverse mortgage, your parents can receive money-

*No monthly payments. Instead of paying a bank each month, they can receive money based on the equity in their home, without making any monthly payments.

*Financially Independent. A reverse mortgage allows seniors to utilize their own assets, the equity in their home, without being financially dependent on members of the family. The psychological benefit is immeasurable.

*Keep title to their home. With a Reverse mortgage, your parents retain the title to their home with no risk of losing it to the lender. In fact, as a “non-recourse” loan, they can never owe more than their home is worth, even if the home’s value goes down. Importantly, no other assets can be affected at any time.

*No affect on Social Security or Medicare. Since they are borrowing the money, there is no affect or Social Security, Medicare, or pensions.

* Government protected. HECM (Home Equity Conversion Mortgages) are insured by the U.S. Government and there are many safeguards in place to protect the borrower from unethical lending practices. The Proprietary Reverse Mortgages are backed by some of the strongest and most formidable lending institutions in the country.

* Repayment of the Loan. If your last remaining parent passes away while residing in the home, you, as heir(s), simply pay off your parent’s Reverse mortgage by either refinancing the debt with a new conventional mortgage, selling the house, or paying off the Reverse Mortgage with other assets. If none of the heirs wish to keep the home, when the home is sold, the heirs receive the net proceeds in accordance with your parents’ last wishes.