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Charlie Said:

do you have income with a reverse mortgage loan?

We Answered:

I really dont know, but it sounds to me like it shouldnt if you lived in the house for 2 of the last 5 years on like the first $500,000 of profit.

and if it is taxable, im sure only a fraction would be taxed from each months draw. the portion that is considered profit would be taxed, not your basis.

this is what sound the most reasonable to me

call the irs.gov people

Heather Said:

Reverse mortgage, what are the payback options and how is the money accessed and distributed?

We Answered:

Payback option - pay it off at death or permanent move. If you can pay it back earlier, you don't need a reverse mortgage. You need to form a trust with the proceeds of the reverse mortgage. The trust can say virtually anything your mother wants to say about how to administer and what restrictions. A trust attorney can do this relatively easily.

Esther Said:

What is reverse Mortgage, What is its benefits and Eligibility?

We Answered:

A Reverse Mortgage is a loan, but in reverse. You still retain title, ownership, and control of your home. With a Reverse Mortgage you can never be forced from your home and there is no time limit on the loan. The lender sends cash to you and you never have to make a payment for as long as you live in the home.

A Reverse Mortgage is a 'non-recourse' loan. The Federal government guarantees all Reverse Mortgages and the lender can only look to the home to satisfy the loan. This means there is 'no personal liability' to you or your heirs. Repayment is due after all homeowners permanently vacate the home (pass away, sell, or permanently move out).

A Reverse Mortgage does NOT affect the appreciation of your home. Your home will continue to increase in value while you enjoy your Reverse Mortgage. Click here to learn about the Reverse Mortgage process.

Francisco Said:

When someone with a reverse mortgage passes away, and they have not yet received the full value, what happens?

We Answered:

If it's an FHA reverse mortgage, then what you say is correct. The property will be sold and the estate will receive the balance minus the debt and the interest accrued.