Posted on: 06th Jul, 2010 11:13 am
My mother has a reverse mortgage and currently owes less than the monies remaining available to her. Can the reverse mortgate be paid off without penalty?
Hi Mary!
Welcome to forums!
Your mother does not have to pay back the reverse mortgage if she is residing in that property and maintaining it. After her death, you or the other heirs to the property will have to refinance the loan and pay off the dues. If you do not intend to save the property, then the lender will foreclose it and recover his dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your mother does not have to pay back the reverse mortgage if she is residing in that property and maintaining it. After her death, you or the other heirs to the property will have to refinance the loan and pay off the dues. If you do not intend to save the property, then the lender will foreclose it and recover his dues.
Feel free to ask if you've further queries.
Sussane
Thanks for the response. If the income my mom has coming in is enough to maintain the home monthly, would it make sense to pay the reverse mortgage off now, or wait until her death.
Thanks again for your time.
Thanks again for your time.