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about reverse mortgages

Reverse Mortgage Tips

Vera Gibbons spoke with Julie Chen about when is a good time for a reverse mortgage and what to look out for.

Residential Foreclosures: Reverse Mortgage Foreclosure ...

Budget legislation recently signed by the Governor introduced an important new pre-foreclosure notice specifically addressing defaults triggering reverse mortgage foreclosures affecting senior homeowners, while also making a technical fix to changes governing pre-foreclosure notices and settlement conferences for reverse mortgages that were signed into law in 2017, which were previously reported in these pages. Jacob Inwald, “ Residential Foreclosures: Reverse Mortgages Now Covered in New York ,” N.Y.L.J. (July 25, 2017). These amendments to New York Real Property Law (RPAPL) 1304 and Civil Practice Law and Rules (CPLR) 3408 appear in Part HH, 2018 Sess. Laws of N.Y., Ch. 58 (A. 9508-C) (McKinneys). They supplement the 2016 amendments to New York’s residential foreclosure settlement conference law, detailed in an earlier article. Jacob Inwald, “ Residential Foreclosures: Legislative Changes to Settlement Conference Law ,” N.Y.L.J. (July 29, 2016).

What you need to know about reverse mortgages

Dear Running,

For retirees who own their home and want to stay living there, but could use some extra cash, a reverse mortgage is a viable financial tool, but there’s a lot to know and consider to be sure it’s a good option for you.

The basics

A reverse mortgage is a unique type of loan that allows older homeowners to borrow money against the equity in their house (or condo) that doesn’t have to be repaid until the homeowner dies, sells the house or moves out for at least 12 months. At that point, you or your heirs will have to pay back the loan plus accrued interest and fees, but you will never owe more than the value of your home.

It’s also important to understand that with a reverse mortgage, you, not the bank, own the house, so you’re still required to pay your property taxes and homeowners insurance. Not paying them can result in foreclosure.

To be eligible, you must be 62 years of age or older, own your own home (or owe only a small balance) and currently be living there.

What is the downside of reverse mortgages?

My in-laws are elderly (in their mid and late 80s) and own their home outright. The in home care expenses for my father in law are mounting and reverse mortgaging their home seems to be the answer.


This product has become ever more popular with the aging society. Because of this these loans are changing almost daily. The downside to this type of loan is your house is appreciating after you lock in the payment rate.