How Could New Reverse Mortgage Legislation Affect Me?

Legislation proposals could determine whether you can keep your house.

Do you have a reverse mortgage?

Did you or your spouse sign the documents without the other as a co-signer?

If yes to both questions, then two senators think there may be cause for concern.

According to a recent New York Times article titled “2 Senators Question Effects of a Reverse Mortgage Proposal,” Senator Marco Rubio (R-FL) and Senator Catherine Cortez Masto (D-NV) sent a letter to the Department of Housing and Urban Development and the Office of Management and the Budget regarding some specific wording in proposed legislation regarding reverse mortgages.

Why?

They were concerned the new wording sought to reverse protections for spouses provided in previous legislation.

The senators are seeking clarity about whether these changes are intended to require widows and widowers to pay the loan or be evicted.

Although this intent has not yet been confirmed, the answer could affect thousands of elderly Americans who are left after the death of a spouse.

By the way, Carolina Gerard with the National Council for Aging Care contacted me yesterday regarding some new content on the Council's website about Elder Abuse, Aging in Place and other important subjects of interest.

I highly recommend you check out this resource by clicking here. 

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The New York Times (August 8, 2017) “2 Senators Question Effects of a Reverse Mortgage Proposal”