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What About Repaying Reverse Mortgage?

The very nature of a Reverse Mortgages can be confusing. A Reverse Mortgage is effectively the opposite of a traditional mortgage as it pertains to money flow. With a Reverse Mortgage, a lender will pay you either in the form of a monthly annuity, one lump sum up front at closing, or with an available credit line. The following lists provide information regarding repayment of a Reverse Mortgage.

A Reverse Mortgage comes due under the following conditions:

  • Death of the sole homeowner or the subsequent death of the surviving spouse.
  • Upon the sale of the home by the homeowner.
  • If the homeowner, or surviving spouse, no longer occupies the home as a primary residence and lives elsewhere for 12 consecutive months (i.e. assisted living home).

When a Reverse Mortgage becomes due there are two options for paying it off.

  • Sell the home and pay the loan off with the proceeds of the sale.
  • The heirs of the homeowner can refinance the loan.
  • A non-borrowing spouse can utilize a HECM to HECM Reverse Mortgage refinance to satisfy the mortgage.

Like all mortgage loans, a Reverse Mortgage does carry some basic 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
  • Personal Bankruptcy
  • Abandonment or donation of the home
  • Eminent domain

To apply for your reverse mortgage click here. Full service provided by Jefferson Mortgage Group LLC specializing in government insured HECM Reverse Mortgages serving the states of Virginia, Maryland, Florida and Pennsylvania.

Top 5 Things You
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