You would think that there shouldn’t be an issue when you add your children to title on a reverse mortgage right? Not so fast.
On conventional loans adding people to title is done regularly without the lender knowing and is acceptable.
However, when it comes to estate planning and reverse mortgages, the laws can conflict.
It’s been common – place for a parent to add their child to their bank account and to the title of their home in the event their parent isn’t able to make decisions and both parties have thought it’s a safe legal thing to do and many times it is.
Most estate planning attorneys used to recommend these practices without knowing if a lender is ok with this activity.
The answer on if whether or not you can add your kids to title on a reverse mortgage can depend on what type of reverse mortgage you have.
The government insured HECM reverse mortgage does not allow people to be added to title after a reverse mortgage has been placed on a home.
Non-HECM reverse mortgages may possibly allow it but it’s a good idea to contact the lender first before you add your child to title of your home to avoid complications.
Here’s a one-minute video I created that sheds more light on this subject.
If you have questions on how California reverse mortgages work, please feel free to call, email or leave a message in the form below.
Thanks for your time in reading and watching the video clip!
Kind regards,
KW