REPAYING A REVERSE MORTGAGE LOAN
The very nature of a reverse mortgage loan can be confusing. With a reverse mortgage loan, lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage loan.
A reverse mortgage loan comes due when under the following conditions:
Death of the homeowner or last surviving eligible non-borrowing spouse
Upon sale of the home by the homeowner
If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
Upon an instance of default.
When the reverse mortgage loan becomes due there are two options for paying it off.
1. Proceeds from the sale of the home
2. The homeowner or heirs of the homeowner can refinance the loan
Like all loans a reverse mortgage loan does carry conditions in order to remain valid. Reasons a borrower may find themselves in default include:
Failure to pay property taxes
Failure to keep the home in good repair
Failure to insure the home
Taking of new debt on the home
Bankruptcy
Abandonment or donation of the home
Eminent domain
To apply for your reverse mortgage loan click here.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.