What about repaying Reverse Mortgage?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage.

A reverse mortgage comes due when under the following conditions:

  • Death of the homeowner
  • Upon sale of the home by the homeowner
  • If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
  • Upon one of the instances of default listed below.

When the reverse mortgage becomes due there are two options for paying it off.

  1. Proceeds from the sale of the home
  2. The heirs of the homeowner can refinance the loan

Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of reasons for which a borrower would find themselves in default.

  • Failure to pay property taxes
  • Failure to keep the home in good repair
  • Failure to insure the home
  • Taking of new debt on the home
  • Bankruptcy
  • Abandonment or donation of the home
  • Eminent domain

To apply for your reverse mortgage click here.

Please note: These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Mortgage Network Solutions

2036 Foulk Rd, Suite 102
Wilmington, Delaware 19810
Phone: 302-252-0100
Fax: 302-375-6330

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Mortgage Network Solutions NMLS# 58096 (http://www.nmlsconsumeraccess.org/)

 

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Licensed States: DC #MLB58096, DE #7552, FL #MLD432, GA #22859, LA #2407, MD #11919, NJ #9958028, NC #L-153858, VA #MC-3401


Licensed by the PA Dept. of Banking #20838, Licensed by the N.J. Department of Banking and Insurance #9958028.

Reverse Mortgage Disclosures: Mortgage Network Solutions, LLC will not make any mortgage loan commitments or fund any mortgage loans under the advertised program. Borrower is required to make payments for real estate taxes and property insurance.