Over 150,000 seniors have already benefited from reverse mortgages. A California reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income-without having to sell their home, give up title to it or make monthly mortgage payments.

The money can be used for anything, from daily living expenses, home improvements, healthcare expenses, paying off existing debts, or simply enhancing the retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.

You need not pay back the reverse mortgage loan to the lender nor make any monthly mortgage payments until the home is permanently vacated.

The money received from a California reverse mortgage loan can be used in any manner and because it is not considered income, it is tax free and will not affect Social Security or Medicare benefits. It is recommended that a CPA be consulted regarding the specific situation.

A California reverse mortgage loan can help parents create a new source of tax-free money without having to sell their home. In fact, they can stay in the home and tap into money they've earned in the form of home equity and avoid having to depend on relatives for financial assistance.

Full title of the home is retained without any risk of losing the home to the lender. And no matter what happens to the housing market, seniors can never owe more than the value of their home when it is sold.

When the last-remaining parent passes away while living in the home, the heirs simply pay off the reverse mortgage principal plus accrued interest. If heirs want to keep the home in the family, a new traditional mortgage can be arranged.

If no one in the family is interested in keeping the home, it can be sold to repay the loan. Any money left over goes to the estate to be shared according to the seniors' last wishes.