A 74-year-old Texas owner wants a reverse mortgage against a homestead with no other liens on it. May a reverse mortgage complying with the constitutional requirements encumber the homestead?
Correct Answer
B) Permitted where it meets the constitutional reverse mortgage rules
A reverse mortgage meeting the requirements of Section 50(k) through (p) of Article XVI is one of the encumbrances that may be fixed on a Texas homestead. Other choices: the constitution names the reverse mortgage expressly, so a flat prohibition is wrong; the owner being 74 and living alone is not the condition, the conformity of the loan is; and a reverse mortgage is a separate category rather than a home equity loan in another form. Source: Tex. Prop. Code sec. 41.001(b)(7)
Why This Is the Correct Answer
A reverse mortgage meeting the requirements of Section 50(k) through (p) of Article XVI is one of the encumbrances that may be fixed on a Texas homestead. Other choices: the constitution names the reverse mortgage expressly, so a flat prohibition is wrong; the owner being 74 and living alone is not the condition, the conformity of the loan is; and a reverse mortgage is a separate category rather than a home equity loan in another form. Source: Tex. Prop. Code sec. 41.001(b)(7)
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