Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

How are heirs affected by reverse mortgage?

Posted on: 17th Jan, 2005 02:02 am
Before you select a reverse mortgage, you should think again for your heirs. They need to be informed of the details of this deal. This is because, in reverse mortgage you keep getting a certain amount and you never pay back anything. Thus the home equity keeps decreasing. Yet the debt can never exceed the value of the house. The lender will always get the lion's share leaving barely anything for the heirs. The options for the heir after the debtor dies are:
  • Repay the loan balance and regain the house.

  • Sell off the house and pay off the loan with the proceeds. Keep the rest if any.

  • Refinance the mortgage by some other package, which allows repayment.
The security which the borrower can take during his lifetime is to maintain a life insurance. The proceeds would help pay the loan. Thus you can get the benefits of reverse mortgage and yet secure your house for your heirs.
Not it you're giving it back to your Lender. If you're not interested in keeping the property, tell the Lender you'd like to give the Deed back to them, in lieu of foreclosure.
Posted on: 14th Mar, 2012 09:52 am
they are not responding. they switch us to someone new every time we sent the letter that we don;t want,we call and no one seems to know what to do. mary
Posted on: 14th Mar, 2012 09:57 am
Who is the Lender?
Posted on: 14th Mar, 2012 10:19 am
wells fargo
Posted on: 14th Mar, 2012 10:21 am
hi maryp!

welcome to forums!

if you are the heir to the property on which there is a reverse mortgage, then you may refinance it in your name and pay off the reverse mortgage. this will make you the new owner of the mortgage and then you can pay off the loan payments on a regular basis and save the property.

feel free to ask if you've further queries.

sussane
Posted on: 15th Mar, 2012 12:45 am
Page loaded in 0.123 seconds.