Nor do the borrower's heirs lose if two days after making the loan he or she is struck by a bus. If the home is worth more than the loan when the borrower dies or sells, either he or his heirs get the balance. A reverse mortgage won't be for everyone. But for some it can be a way to stay in their own home and get extra income in retirement. First, you must get counseling to make sure you understand just what you're getting into.
Counseling is available right now either in person or over the phone.
It takes a couple of hours. Not all will, nor are they required to. Most lenders probably will use an outside service to handle the loan. Right now, there's only one company, Financial Freedom Inc., offering this service in Texas, Norman says. But he expects others to quickly get into the business in the state.