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To: pezz who wrote (7353)	10/5/1998 8:40:00 PM
From: Lady Lurksalot	Read Replies (1) \| Respond to of 67261

Pezz, I figured that the fees would added to the loan, thereby decreasing equity in the property. When the house is sold and the mortgage company keeps up to half the profits, those fees, in addition to other costs, will surely come off the top of the estate's share of the profits. As for a straight line of credit or other conventional refinancing deals, yes, loan payments would have to be made. However, there are no-doc and low-doc loans, meaning that the property's value qualifies the loan, rather than the credit-worthiness of the borrower. These loans are usually less expensive than reverse mortgages and give greater financial maneuverabilty to the homeowner. But again, there is a certain peace of mind that must come with owning unencumbered real estate. <edit> In the event that the property's value falls below the amount of the loan and/or the costs of selling, does the loan contract require the borrower to make up the shortfall? Holly