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.
 

 

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