When to Consider a Reverse Mortgage With the current recession, most seniors are worried they will not be able to pay their bills and remain in their homes. Moreover, we all know that medical expenses can and has wiped out savings, forcing many homeowners to forclose. When to consider a reverse mortgage depends on the individual. Seniors age 62 and older can borrow money against the value of the home. The payments are tax-free, and the homeowner retains the title to the home until such time as the homeowner moves or dies. Under the terms of the reverse mortgage, “the loan becomes due when one or more of the following conditions occurs: (a) the last surviving borrower passes away or sells the home; (b) all borrowers permanently move out of the home; (c) the last surviving borrower fails to live in the home for 12 consecutive months; (d) the borrower fails to pay property taxes or hazard insurance; (e) the borrower does not maintain the home in reasonable condition.” Why Would You Consider a Reverse Mortgage? There are several reasons. A senior would not have to worry about relying on family members for financial assistance. They would be financially independent. A senior would not have to leave his or her home for any reason as the title to the home is retained. No longer would a senior have to make a monthly mortgage payment. A reverse mortgage is a tax-free payment that does not affect Social Security payments or Medicare benefits. A senior can use the money received monthly to pay bills, take a vacation, enroll in college courses, or for medical emergencies. If you are considering a reverse mortgage, it is recommended that you speak with a financial counselor or professional and licensed lender to determine if this is the appropriate action given your particular situation.