FOR ADULT CHILDREN
The Family Conversation Kit
Use this to start a calm, practical conversation with a parent who has, or is considering, a reverse mortgage. Print it or forward it to your siblings.
1. Questions to ask your parent
- What would you like to happen with the house in the long run?
- Do you plan to stay here as long as you can? What would make that harder?
- Is there a reverse mortgage on the home now? Who services it?
- Is everyone who lives here on the loan? Is a spouse listed as a non-borrowing spouse?
- Who handles the property tax and insurance bills today?
- Who should we call first if something happens to you?
2. Documents to gather in one place
- Loan closing documents and the servicer's name and phone number
- The most recent loan statement
- Deed, and trust documents if the home is held in a trust
- Homeowners insurance policy and property tax bills
- Will, powers of attorney and healthcare directives
- Contact information for their attorney, financial advisor and loan professional
3. If a parent with a reverse mortgage passes away
- Notify the loan servicer and ask for a payoff statement.
- Keep taxes, insurance and utilities current while you decide.
- Get an appraisal so you know whether equity remains.
- Respond to the servicer in writing within 30 days of their notice.
- Decide whether to keep, sell or hand back the home. See your options.
4. Summary to share with siblings
A reverse mortgage does not transfer ownership of the home. The loan is repaid when the last borrower leaves the home, usually from a sale. Heirs never owe more than the home is worth. If there's equity left, it belongs to the estate.
wikireversemortgage.com · Educational information, not legal or financial advice.