A Family Funded Reverse Mortgage
Candidates for a reverse mortgage are 62 or older and owns a house that is fully paid for or has a relatively low mortgage. With a reverse mortgage, the homeowner borrows the money but does not have to repay the loan until the property is sold or the homeowner dies. At that point, the lender is repaid the principal and all of the accrued interest. The lender cannot foreclose on the property or in any way interfere with ownership, unless the owner is causing waste or damage.
As an adult child of a senior homeowner, instead of having your parents go to a commercial lender, maybe you could be a private lender. Say your parents want an extra $2,000 a month. They can enter into a line of credit arrangement with you. They would sign a promissory note that is secured by a deed of trust (a mortgage) on the property.
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