Repaying a Reverse Mortgage

REPAYING a Reverse Mortgage

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either monthly or with a lump sum. The following list provides information regarding repayment of a reverse mortgage.
 

A reverse mortgage comes due when one of the following occurs:

• Death of the homeowner

• Upon the sale of the home by the homeowner

• When the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)

• There are circumstances where a non-borrowing spouse is able to remain in the home upon the death of the homeowner

• Proceeds from the sale of the home

• 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

• New debt on the home

• Bankruptcy

• Abandonment or donation of the home

• Eminent domain
   

To apply for your reverse mortgage click here. Advanced Funding, your Utah mortgage broker, is here to help.
 

*HUD Mortgagee Letter 2014-10 - This material is not from HUD or FHA and has not been approved by HUD or any government agency.