I have heard those stories as well.  I believe that this situation arises when only one spouse is in title and on the note.  I think they have different valuation tables for reverse mortgages with two borrowers - because the loan amoutn is based on the last to die.  If they loan based on one-life, I don't think they care about a non-borrower, non-title holding, surviving spouse.

It seems awfully cold-hearted to me, but I guess I understand.  I agree with you, attorney representation is incredibly important with a reverse mortgage.  The loan officers don't fully understand the potential problems and they never get explained to the borrower.  Maybe the CFPB needs to start requiring better disclosures.

Thanks,
Robert A. Franco
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