Paying Back a Reverse Mortgage*
Reverse mortgages must be repaid in full when all parties on the deed, either dies, sells their home, or permanently moves to another primary residence. Lenders also may make the loan due if the borrower fails to stay current on their taxes and insurance or allows the property’s condition to deteriorate. If the borrower fails to live in the home for at least 183 days in any given year, the borrower is considered to have vacated the home and is not claiming it as their primary residence. Once the loan is due, the borrowers or their heirs can decide whether or not they want to pay off the balance of the Reverse Mortgage or retain ownership of the property. It is important to note that the borrower and the heirs will not be required to pay more than the value of the home after the mortgage matures. A Reverse Mortgage is a non-recourse loan (No Personal Liability Beyond The Value Of The Home).
*Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.
*If a joint borrower dies, the surviving spouse will NOT have to terminate the loan.
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Other Popular Reverse Mortgage Questions:
What are some basic qualification parameters?
How much cash can I get and how do I get paid?
What happens to my debt and what is the maximum I can owe?
Will there be anything left for the borrower or their heirs once the property is sold or the borrower no longer uses the home as their primary residence?
What are some of the costs associated with reverse mortgages?
Will receiving payments affect one’s Social Security, Medicaid, or Medicare benefits?
Who owns the property, the lender or the borrower?
Is it possible to refinance a reverse mortgage if a better opportunity becomes available?
What types of licenses and certifications do reverse mortgage lenders need?