>”What kind of restrictions can be placed on the rev mtg with regard to purchase of the home by the heirs? Is there something that the lender can do to make it difficult to keep the house in the family?”
Absolutely none. When the owner passes, the debt becomes “due” and the heirs have 12 months to decide if they want to purchase the home or let it go back to the lender.
Reverse mortgages are very strictly regulated as they are a government loan. One last thing to be careful of. Reverse mortgage counseling is a requirement – but most of these counselors receive very little training, and not all, but most, are complete idiots and can scare seniors right out of doing the loan with their misinformation!
