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Everyone on a deed has to sign off to make changes. A lot of these answers say to talk to an attorney. For $29.95/mo you can call Legal Shield who sets you up with a local attorney and they can answer any questions on any subject as often as you want. I was referred to them by a friend and have called them about 6 different things in the last year. Happy I called.
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He only owns 40%, so everyone would have to sign the paperwork for any kind of loan. You need to talk to elder attorney. There may be a document that can be filed in county records to add another level of security when a title search is done.

Another issue, does he have POA? Another reason for mom/dad/you to see an elder attorney to fix the conflict of interest problem. As POA, he might be able to sign for parents and then for himself to pull off a reverse mortgage or other loan against the house.
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Peanut67: Retain an elder law attorney.
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Do not do a thing w/out speaking to elder lawyer and the mortgage company.
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Seek direction from
Elder Law Attorney
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I would think all the owners have to agree to this, or like said he gets it on his 40%. But I would think that would complicate things for your parents. Do u know the company he is trying to get a reversed mortgage with? I may call them and ask if they are aware their are other owner. If ur parents are not in agreement, then the Mortgage company may not want to do business with brother.

Reversed mortgages are tricky. Mom and Dad could lose their home. If they are in agreement, I hope they understand how it all works. TV makes it seem so easy. But there are fees and regulations.
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I read once it was possible for a spouse to sign to obtain a RM when the other spouse wasn’t old enough. Now the rule is that each person living in the home must agree.
My BIL took one out and then died. Left SIL having to sell because she wasn’t old enough to sign when he took it out.

Does the brother have your parents POA for finances and medical? Is it activated?

They also must keep home owners insurance up, keep the taxes paid, keep the home in good repair etc. There are expensive fees, the full value can’t be borrowed. There are many factors to consider.

It is generally not considered the wisest way to solve a financial problem but there may be exceptions.

You don’t give many details in your post but if brother has been living with them and is their caregiver he may be desperate to hire help, make repairs, etc etc.

Sometimes what looks like a big mistake (and may be) is the only known option that is acceptable for all.



Give us more details and perhaps we can help.
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So, to get a reverse mortgage, he would need to be 62 or older and the home would need to be his primary residence. Is this your parents’ primary residence too?

I would expect additional owners to complicate the process. Do they also want a reverse mortgage on their portion or do they even agree that he can mortgage his share?

If they are all in agreement that this is a great, albeit expensive, way to keep them in their home for as long as possible, you can’t stop competent people from making questionable decisions.

If he just wants cash, I’d expect him to force a sale.
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Bumping up for answers.
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