We have, in the past few blogs, written in favor of the reverse mortgage. But this does not in anyway mean that a reverse mortgage is the only financial instrument that will solve your cash problems. So, in order to restore balance to the universe, here we have pointed out when a person should abstain from getting a reverse mortgage.
When You Want to Move to another Place in a Few Years
There is a covenant attached to reverse mortgages that states that if a person permanently moves to another location, then the bank can liquidate the house in order to recover the amount lent. So you better stay away from reverse mortgage lenders if you have plans of moving to another location.
When You Want to Leave Your House for Your Heirs
In a reverse mortgage, the lending company holds the first charge on the assets. This means that after the death of the borrower, the lending company can sell the house. This means that your house will be sold rather than being handed over to your future generation. So, never even think about visiting a lender if you don’t want your house to be liquidated.
You Live with Someone in the House
If your dependants live with you in your house, then you must never buy a reverse mortgage. This is because your dependants, after your death, will be forced out of the house and your house will be sold. This means that your dependants will be homeless after you die, you surely don’t want this to happen.
Longbridge Financial is a lending company that provides reverse mortgage loans and is approved by the Federal Housing Administration (FHA). It operates in 46 states and is committed to providing financial peace of mind to the elder generation. It is a member of the NRMLA and is considered as the best reverse mortgage provider in New Jersey.