Posted on: 15th Mar, 2007 09:54 am
what is the benefit of reverse mortgage to the lender?
The advantage that lender holds is that the loan will get repaid when the borrower dies, the house is sold or borrower does not live in that house as his principal residence.
Oldfield
Oldfield
Welcome Skvaze,
The benefit that i can think of is that at any cost the loan gets paid off. There are few chances of default. Either the loan is paid of by selling the property by the lender or the borrower. Or else, the heirs of the borrower pay down the debt after the borrower dies. In any case, the lender will get back what he has initially invested.
The benefit that i can think of is that at any cost the loan gets paid off. There are few chances of default. Either the loan is paid of by selling the property by the lender or the borrower. Or else, the heirs of the borrower pay down the debt after the borrower dies. In any case, the lender will get back what he has initially invested.