Be Careful About Putting Only One Spouse’s Name on a Reverse Mortgage

A recent case involving basketball star Caldwell Jones demonstrates the danger in having only one spouse’s name on a reverse mortgage. A federal appeals court has ruled that an insurance company may foreclose on a reverse mortgage after the death of the borrower, Mr. Jones, even though Mr. Jones’ widow is still living in the house.

While reverse mortgages may look like no-lose propositions on the surface, they also have some significant downsides. First, the closing costs for these loans are about double those for conventional mortgages. For example, closing costs on a $110,000 reverse mortgage for a $200,000 home would be more than $10,000.

A spouse might not be named on the mortgage for a number of reasons: one spouse may have taken out the reverse mortgage before the marriage, or one spouse may be under age 62 and ineligible, or, more likely, lenders often encourage the younger spouse not to be named as a borrower because then the loan amount can be bigger.

About 10% of reverse mortgage borrowers. Million-dollar housing markets One big issue the new rules don’t address, however, is that many couples take out reverse mortgages in the name of the older.

It can become complicated when one borrower meets this age requirement, but his or her spouse is under the age of 62. If the home is owned solely by the older spouse he or she may technically be able to take out a reverse mortgage in his or her name only.

If I add her to my checking account and/or add her name to. Is a reverse mortgage a good way to do that? Also, which company should I approach for this? I’m a widow with no children. -Jitka You.

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 · Be Careful About Putting Only One Spouse’s Name on a Reverse Mortgage – Be Careful About Putting Only One Spouse’s Name on a Reverse Mortgage A recent case involving basketball star Caldwell Jones demonstrates the danger in having only one spouse’s name on a reverse mortgage.

Previously, full repayment of reverse mortgage loans fell due upon. would remove their spouse from the home’s title before taking out a reverse mortgage loan in order to maximize their loan amount.

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