“So when all of these old people die and suddenly their kids can’t sell their houses to make up the $1 million they owe on their $400,000 homes, blame Fred Thompson entirely.”
Eh? If a lender is stupid enough to lend $1M on a reverse mtg, is he entitled to sue the heirs of the person who mtgd the place? I mean, if you take a rev mtg on your $400k house, and when you die you’ve somehow managed to squeeze $1M out of the lender, he gets your $400k house, right? What if that’s all you had? Your kids owe him something?
Of course not. They can take the secured property. I know of a few loans where the kids will get something and while RM company will get screwed.