In the past, some married couples would leave one spouse off the reverse mortgage to qualify for a higher amount. When that spouse passed away, the surviving spouse would need to either pay the loan in full or face foreclosure. The new rules will require both spouses to be on the loan to avoid this issue, but the change will cause decreased borrowing power for the couple. The changes will begin rolling out the end of September and over the following months, so you may want to start the process now.
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar.
©2013 Sun Sentinel (Fort Lauderdale, Fla.)
Distributed by MCT Information Services
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