Anyone considering a Reverse Mortgage is required to attend a class to fully inform the prospective RM candidate of all the pitfalls. Any RM Lender should provide this person access to this information.

Someone without heirs might as well live for TODAY !

I have two pros I trust that specialize in reverse mortgages; want to offer your client one or boths' contact info?

If the situation fits the needs then have heirs or not should not matter.

Whether someone has heirs or not is not criteria for RM or sale.

Find lender in their area as rules may be different

There is a requirement that the person complete the Reverse Mortgage training program before it can be closed.   They should contact a trusted local lender to set this up under no obligation to proceed.   I just had a client decide NOT to do a Reverse Mortgage in a similar situation and is doing a cash-out refinance instead to draw the equity out now and make charitable donations while they are still here to enjoy the contribution process.

RM are a good idea....

...until plans change. Even then, the costs I observed were not unreasonable.

BE fully aware of occupancy rules. An extended medical stay or rehabilitation COULD become truly problematic for this population. There are work arounds, but you need to know the rules to win.

As a  Mortgage Banker, I only do the FHA insured  REVERSE and REVERSE FOR PURCHASE mortgages. It is true that A Reverse may not be for everyone. The primary purpose is to "Use your home, to stay at home." Seniors must attend a counseling session and be issued a counseling certificate. In my 45 years of lending, I have seen many borrowers live a much more enjoyable life due to the Reverse. Yes, it is not for someone who is concerned about siblings, for a Reverse mortgage balances increase every year. In today's world the best product is where you receive a monthly income (called a tenure) and not a Lump Sum. This also helps reduce the balance due upon the death of those on title. I do Reverse in all 50 states as well as conventional deals.

My CPA has said this loan product is not good for all, and they should check in with their professional tax person!  

 this is an excellent question and I enjoyed reading some of the answers.

Reverse mortgages can be a good solution under the right circumstances, but this is an area where it's crucial to be well-informed before making the choice. Some RMs have terms that are onerous and not a good choice inder any circumstances.

Sally K. & David L. Hanson I'd prefer not to guide anyone in this matter. It's a personal choice, isn't it?

I have a terrible opinion, but if there are no heirs perhaps it's best.  I'd advise them to talk with a tax attorney and lender

I agree with Sandy

I understand where they are coming from...no heirs, own house free and clear, no plans to move, etc. but much more information would be needed to make a good assessment. RM are based on the age of the parties  and there is a cap on the maximum payout so he would not get 100%. The RM is a complicated product so he needs to speak with a couple different lenders who specialize in this then run the numbers before making a decision.

It all depends on the terms and conditions of the mortgage.  Not having heirs probably makes a reverse mortgage more attractive.

If he needs the income to live and to be able to stay in his home and he wants to stay there it could be the right choice. 

My mom and dad did this without telling me....They lost a ton of money.

Now, for someone who has no heirs and are not inclined to donate a bunch, then it MAY be a good deal for them, but they need to talk to a could of lenders to get their thoughts

They need to make sure they understand what might happen if their health starts failing and they will have to move out of the into an assisted living arrangement. 

At a minimum they need to talk to a couple of estate planners. Don’t let the cash cloud good judgement.

I didn't know the answer so I'm here to learn Sally...

Depends on their situation. Older with no family to "leave property" why not get a RM? They will have money that's tied up in the property to use for what ever they need/want.  My MIL's Mother did this about 12 -15 years ago.  She is now 92!  It's been useful she is still in the house. I have the paperwork and there are options for when she is gone or moves on.  If a homeowner needs/wants the $$ they should speak with a lender that is experienced with Reverse Mortgages.

I think even someone with no heirs should think very carefully before getting into a reverse mortgage. 

I agree with Greg on this one....

I would suggest that they spend some time and money with a good financial adviser, many of these RM programs can be a little sketchy.

I guess I would answer "Maybe, lets get some help on the Reverse Mortgage question". I would call around and get a little info/education myself but mostly to make sure I thought the person was going to take good care of my client. Then give my client the contact info once I fould someone I trusted and liked. Like most other programs, RM's have their role and are great for some situations and not so good for others.

Sally K. & David L. Hanson Very good question.

This individual should seek financial/legal advice.

If you are not educated in this area, do not advise.  Tell them to talk to an appropriate person.

I know a lender but it sounds like you got some help - good luck

As an agent and not a lender I do have some insight on this.  Two prospective listing clients wanted to sell their home, however they were not in a good position after a reverse mortgage.  Both parties situations had changed significantly after taking out the reverse mortgage.  One did sell and the other stayed put.  I am sure a RM can be a great thing for some, I have just never met anyone that shared their story with me.

Reverse does not leave money on the table. Owners/Borrowers of a reverse get to stay in house until they die and only pay taxes and insurance. Their will would pass on the equity to heirs. A reverse does not use 100% of the value. My answer- single story house, can be adapted to have safety rails in bathroom or upright walk in tub (thinking about when they are 90) this might make sense. If they become ill or need care will they have the money to hire help? What is age and general health?  

Downside of Reverse- is one of the most expensive mortgages. There may be other less expensive tools as rates are in the 3's...   

If he is short on cash and has enough equity in his house, it is a good way for him to get cash back out of his house.

I'm not sure why having no heirs is a problem. Why lender bias? 

If anything it would be a straight forward type of thing as long as their was enough equity to use. I actually think it would be a good way to supplement their income. No heirs that complain their parents used up all 'their money'.

No Heirs?  What better reason to spend your house.

I don't advise on this. It's become a specialty. I do know that all of the seniors I worked with who considered it, ended up choosing to sell, because most were facing assisted living in the near future. It's case by case as to which path is best for each owner. If it was me, I might sell, then rent a condo for a year or so, and look around at places to relocate.

I would have to say it is still a good thing to do.

Personally, I don't think the heirs should be taken into consideration for a decision like that.  Whatever is best for the homeowner is the best decision.   

I revere mortgage can be an excellent option for many seniors.

I would recommend they speak with a lender you know and trust.  I have several local lenders I trust to do the right thing for the client, otherwise I would not recommend them.  Sometimes a reverse mortgage makes sense for a person.

I'd suggest a visit and consultation with his financial adviser.  

For someone who wants to stay in their home and has limited income and no heirs then I think a reverse mortgage is appropriate . Just remember you never get 100% of its current value .