Mortgage proceeds may be disbursed to the homeowner in one lump sum or in monthly payments. The FHA-insured mortgages are then repaid upon the death of the homeowner through the sale of the home. Family members of the deceased are given the first opportunity to purchase the home. They can use this money for everything from everyday living expenses to medical bills or home repairs. This is commonsense and compassionate legislation which protects our seniors from exploitation.
Many people face a position that is paradoxical.
They have a home that they have bought and paid for but have no income other than Social Security. It is unconscionable when HUD provides these types of services for free. We have a responsibility to our seniors to make sure that they don't fall prey to such untoward schemes when they opt for a reverse mortgage. S. 562 deals with this need. The potential loss of a home due to a lack of money to pay bills is devastating.