What about repaying Reverse Mortgage Loans?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage 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.

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)
• Upon any instance of default

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 use their own funds or obtain financing to satisfy the loan

Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of several 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.