Those reverse mortgages have pitfalls

Regarding “Ringing in the New Laws” [Dec. 24]: Reverse mortgages avoid monthly payments, making them seemingly attractive to the elderly. They are, however, expensive and complicated.

The worst-case scenario is when an adult child sacrifices a job and moves into the family home to care for an aging parent. The parent then takes out a reverse mortgage to help support the household as well as the adult child. If the elder falls or has a stroke that requires placement in a nursing home for rehab, under the reverse-mortgage rules, that mortgage now becomes due and payable. The home is no longer considered a primary residence.

Depending on the signed contract, the loan is due when the senior can no longer live in the home -- and this could mean that a short stay of a month in a nursing home is sufficient to call the loan due and undermine that senior’s ability to return home. The end result is that the cherished family home may need to be sold to pay the reverse mortgage.

Reverse mortgages affect one’s ability to qualify for public benefits such as Medicaid, Supplemental Social Security Income and Medi-Cal that would otherwise help pay for nursing home care.

Other kinds of traditional loans would provide the money needed but do not carry the conditions of a reverse mortgage.

ZORAN K. BASICH

Glendale

The writer is an elder-care attorney.