Repaying a Reverse Mortgage?

Borrowers can defer repayment of the loan until they sell the home, move outside the home for more than 12 months, pass away, or do not comply with the loan terms.

Although borrowers have no monthly mortgage payments, they are responsible for! The following lists provide information regarding repayment of a reverse mortgage.

A reverse mortgage comes due when under the following conditions:

• Death of the homeowner
• Upon sale of the home by the homeowner
• If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)

When the reverse mortgage becomes due there are two options for paying it off.

1. Proceeds from the sale of the home
2. The heirs of the homeowner can refinance the loan

Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of reasons for which a borrower would find themselves in default.

• 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 click here.