Reverse Mortgage: What Your Family and Heirs Should Know
A reverse mortgage can be a wonderful option to help seniors broaden their financial resources, with opportunities that can be tailored to your retirement needs. At Citizens Lending Group, we want our clients to be well informed — and we recognize that family is a major consideration in deciding whether a reverse mortgage is right for you. We’re glad to explain how a reverse mortgage may affect your family and heirs.
While a reverse mortgage may make sense for your situation, it’s important to know all the facts before you commit — because it can affect not only you, but your family and heirs. We want you to have the full picture, so you can move forward with confidence.
We’ve always said: bring your family.
From day one, Citizens Lending Group has encouraged homeowners to bring family members to every consultation. Not because we require it — because we’ve seen what happens when everyone is in the room.
A son or daughter often asks the question their parent didn’t think to ask. A spouse hears something differently than their partner. A family that goes through the process together comes out of it with alignment, not anxiety.
Reverse mortgages are significant financial decisions — ones that affect inheritance, living arrangements, and long-term retirement security. They deserve more than a one-on-one conversation between a senior and a loan officer. We’ve built our entire practice around that belief.
Whenever possible, we meet directly with borrowers and their families. Better decisions happen when everyone who cares about the outcome is in the room — and we’d rather spend an extra hour with a family than have someone sign something they’re not fully confident about.
The questions worth raising before your parent signs anything.
What happens to the home — and the inheritance — when my parent passes away?
The loan becomes due when your parent permanently leaves the home or passes away. At that point, heirs have 12 months to decide: sell the home and keep any remaining equity after the loan is repaid, refinance the reverse mortgage into a traditional loan and keep the home, or pay off the balance through other means. Heirs are never personally liable for any shortfall — if the home sells for less than the loan balance, the FHA insurance covers the difference.
What if my parent needs to move to assisted living?
If the home is no longer your parent’s primary residence — including a permanent move to a long-term care facility — the loan becomes due. Your parent (or the estate) would need to sell the home or arrange another form of repayment at that point. This is one of the most important scenarios to think through before proceeding, and Jeff will walk your family through it in detail during a consultation.
Can the lender take the home if my parent can’t make payments?
There are no required monthly mortgage payments on a reverse mortgage, so the traditional payment-default scenario doesn’t apply. However, the loan can be called due if your parent fails to pay property taxes, homeowners insurance, or HOA dues, or if the home falls into serious disrepair. Staying current on those obligations is the borrower’s responsibility — and one Jeff reviews carefully with every client before they proceed.
How do we know this lender is trustworthy?
That’s exactly the right question — and one worth asking of any reverse mortgage company. For Citizens Lending Group, the answers are: AAA rating with the Consumer Business Alliance, licensed by the California Bureau of Real Estate (License #01814249), registered under NMLS #1109984, and 25+ years of Jeff’s personal track record in Orange County real estate and lending. You’re also welcome to sit in on any consultation, ask Jeff anything directly, and take as much time as you need before any decision is made.
Is a reverse mortgage the right choice for my parent’s situation?
It depends on the specific situation — which is exactly why Citizens doesn’t push an answer before a conversation happens. The factors that matter include your parent’s age, the home’s equity, existing mortgage balance, monthly expense picture, long-term care considerations, and what your family’s goals actually are. Jeff will tell you honestly if a reverse mortgage isn’t the right fit. He does that regularly.
Can my parent change their mind after signing?
Yes. Federal law provides a three-day right of rescission after closing — your parent can cancel the loan within three business days of signing with no penalty. Before that point, nothing is binding.
What to watch for when evaluating any reverse mortgage lender.
A lender worth trusting will welcome scrutiny. Here are the warning signs that should give any family pause — regardless of which company your parent is considering.
Pressure to decide quickly
A reputable lender will never rush a senior or their family toward a signature.
Promises that sound too good
“Tax-free income forever,” “no risk whatsoever,” “the government pays for everything” — reverse mortgages are beneficial but not unconditional.
Reluctance to involve family
Any lender who discourages family participation in the process is a lender worth avoiding.
Unclear explanation of ongoing obligations
Property taxes, insurance, and HOA dues must remain current; a lender who downplays this is not being straight with you.
No independent counseling requirement
Legitimate HECMs require a session with a HUD-approved independent counselor before closing; if a lender tries to skip this step, walk away.
Unlicensed or unverifiable credentials
Check any lender’s NMLS number at nmlsconsumeraccess.org before signing anything.
Unsolicited contact or high-pressure outreach
Legitimate reverse mortgage companies don’t cold-call seniors with urgent offers.
Citizens Reverse Mortgage welcomes every question on this list — and invites you to verify our credentials independently.
Ready to sit down as a family? Jeff will walk through every concern, answer every question, and make sure everyone feels confident before any decision is made.
If you’d like to know whether you meet the reverse mortgage requirements, or simply want more information, contact Citizens Lending Group today. We’re happy to help, and we proudly serve as a leading California reverse mortgage specialist.
In-person · Phone
Jeff Krolosky · NMLS #483675 · Citizens Lending Group · NMLS #1109984 · 1800 480 6828
These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage is a loan. You must continue to pay property taxes, homeowners insurance, and HOA dues.
