Posted on: 14th Jun, 2011 12:16 am
I'm very new to the concept of reverse mortgage. What I find is that the lender will take my property after I die to recover his loan. But will I be able to leave back all other things that I have now to my heirs?
Hi Guest,
It is true that the lender will sell off the property in order to recover the reverse mortgage payments. He won't come after your other assets in order to recover the debt. Your other assets will go to your heirs. Moreover, if there is any excess amount resulting from the sale of the property, then the lender will give that extra money to your heirs.
Thanks,
Jerry
It is true that the lender will sell off the property in order to recover the reverse mortgage payments. He won't come after your other assets in order to recover the debt. Your other assets will go to your heirs. Moreover, if there is any excess amount resulting from the sale of the property, then the lender will give that extra money to your heirs.
Thanks,
Jerry
also, your heirs have first right to be able to refinance the reverse into their names and keep the home, if they choose to. otherwise, the home would be sold like jerry mentioned.
Typically, we've found that surviving family members will have approximately one year in which to determine how best to pay back the underlying debt on such a property. The home can be sold, certainly; the heirs can seek a new mortgage once they've acquired title, thereby paying back the existing debt; in some cases, heirs either cannot or choose not to deal with the situation, and lenders wind up taking a legal action to obtain their payoff - usually a foreclosure in that instance, for example.
As for the remainder of a person's estate, it is completely separate from the real estate and no lender would have any claim against that. The lender's sole collateral is the real estate.
As for the remainder of a person's estate, it is completely separate from the real estate and no lender would have any claim against that. The lender's sole collateral is the real estate.
Reverse lender doesn't 'get the house' unless the heirs don't claim it with a new mortgage
>>What I find is that the lender will take my property after I die to recover his loan.
It happens like George says. Somebody is going to inherit Title to the property, and they have several options available to them as to how they'll repay the Reverse Mortgage Lender. But it's important to remember, the Lender doesn't take the property to repay the loan - unless it's the only option available to them.
It happens like George says. Somebody is going to inherit Title to the property, and they have several options available to them as to how they'll repay the Reverse Mortgage Lender. But it's important to remember, the Lender doesn't take the property to repay the loan - unless it's the only option available to them.
