One thought on “What happens to a reverse mortgage when you die?

  1. Arti says:

    As with any mortgage there is a loan agreement that you must adhere to. As with any financial product, you should seek counsel from your trusted advisor and careful consideration and suitability should be discussed. If your loan balance exceeds the current property value at a time of a default you may end up losing your home to foreclosure and have no equity remaining. Reverse mortgage underwriting guidelines require that the borrower maintain property charges and occupy their home as a primary residence. If you fail to do so, the loan servicer must call the loan do and payable and force the borrower to either refinance or sell the home. Your heirs will have 6 months to refinance the loan or up to 12 months by filing an extension to sell. If there is a shortfall in the loan amount to the current appraised value, you may rest assured, reverse mortgages are non-recourse in nature and therefore cannot transfer debt to your heirs or estate. Like any mortgage or financial products there are upsides and downsides. Like any mortgage or

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