Reverse Mortgage Disadvantages
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- Heirs inherit less
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- Reverse Mortgage serves the borrower, status quo serves heirs (mostly children)
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- Passing on maximum inheritance may be priority
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- Children can kill deal!
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- 90% of children spend inherited money within one year
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- Must be Primary Residence
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- Must pass FHA Appraisal
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- Borrowers can’t get it as fast as they want it!