Posted on: 12th Jan, 2006 10:05 am
I am going to take a reverse mortgage to make some home improvements and pay off my existing mortgage. I just wanted to confirm the repayment mode of the loan. Is it true that the mortgage needs to be repaid only if I die or sell my home or move out permanently?
Hi Edmond,
It is true that reverse mortgage has to paid back after you, if you are the last surviving borrower. Also it is payable if the home is sold or you move out of it.
Besides, there are some other factors under which repayment has to made-
Generally lenders have the option to meet these expenses by reducing the advance on your mortgage and paying these expenses with the difference but that is only optional.
The loan documents must be read carefully to get the idea about the conditions under which it needs to get repaid.
God bless you.
For MortgageFit,
Samantha
It is true that reverse mortgage has to paid back after you, if you are the last surviving borrower. Also it is payable if the home is sold or you move out of it.
Besides, there are some other factors under which repayment has to made-
- If the property tax is not paid
- If you do not maintain the condition of your home
- if you fail to keep your home insured
Generally lenders have the option to meet these expenses by reducing the advance on your mortgage and paying these expenses with the difference but that is only optional.
The loan documents must be read carefully to get the idea about the conditions under which it needs to get repaid.
God bless you.
For MortgageFit,
Samantha
I collected information on some other conditions similar as with most of the other loans under which a reverse mortgage requires to be paid off -
Hope this information will benefit you.
Regards,
Blue
- If bankruptcy is declared
- If your home is required by a government agency for public use
- If a government agency denounce your property for health or safety reasons
Hope this information will benefit you.
Regards,
Blue
If the lender feels that the loan is getting unsecured due to any change, then the lender can ask for the reverse mortgage repayment. The reason for the change may be -
As suggested by Samantha, the loan paper is always required to be checked minutely for the conditions and the rules.
James
- If the house is rented partly or fully
- Any new owner added to the title
- Any new debt is taken on the home
As suggested by Samantha, the loan paper is always required to be checked minutely for the conditions and the rules.
James
I took a reverse mortgage house was apraise 275,000 if I live to be 95 and the amount owed is higher but the market value is less than the value of the house my heirs pay back only the market value or the owed amount at time of death???
No. If you owe more money on the Reverse Mortgage then the value of your house, the heirs will have to repay the Reverse Mortgage Lender in full with that scenario.
