In article , "Ryan, KC8PMX"
writes:

Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.

Yep, those are reverse mortgages, and they're a useful tool. Essentially they
let a person get the equity out of a paid-off house without selling it.

But there are certain things to check very carefully. For example, what
interest rate is used and what are the tax ramifications? What happens if,
heaven forbid, you dad signs the papers and passes away a few days/weeks/months
later? Or, what about just the opposite, if he outlives the mortgage? (I know a
93-year-old still active and living alone in his own, paid-off house).

There's also the issue of what happens if he has to go into a nursing home-type
situation somewhere down the road.

73 de Jim, N2EY