Posted on: 12th Nov, 2010 05:56 am
My Father-In-Law is going to do a reverse motgage and tells my wife (whom will get the house if something happens to them) that if he does this that it would be better if we bought the house from them in a year or two from now, rather than waiting till they die. I cannot see how this would benefit my wife and me whom will inherite the house anyway. Could you please explain why it would benefit us?
Your father-in-law will be taking out a reverse mortgage. In such a situation, if your wife buys the property from him, then the lender will ask your father-in-law to pay off the reverse mortgage in full. Thus, your wife will have to refinance the loan immediately. If she can afford to do that, then your father-in-law can transfer the property to her. I don't think there is any particular benefit for doing this.