repayment of reverse mortgage

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I am going to take a reverse mortgage to make some home improvements and pay off my existing mortgage. I just wanted to confirm the repayment mode of the loan. Is it true that the mortgage needs to be repaid only if I die or sell my home or move out permanently?

Samantha · Posted: Thu Jan 12, 2006 11:22 am Post subject:

Hi Edmond,

It is true that reverse mortgage has to paid back after you, if you are the last surviving borrower. Also it is payable if the home is sold or you move out of it.

Besides, there are some other factors under which repayment has to made-

If the property tax is not paid
If you do not maintain the condition of your home
if you fail to keep your home insured

Generally lenders have the option to meet these expenses by reducing the advance on your mortgage and paying these expenses with the difference but that is only optional.

The loan documents must be read carefully to get the idea about the conditions under which it needs to get repaid.

God bless you.

For MortgageFit,
Samantha

blue · Posted: Thu Jan 12, 2006 12:01 pm Post subject:

I collected information on some other conditions similar as with most of the other loans under which a reverse mortgage requires to be paid off -

If bankruptcy is declared
If your home is required by a government agency for public use
If a government agency denounce your property for health or safety reasons

Hope this information will benefit you.

Regards,
Blue

jameshogg · Posted: Thu Jan 12, 2006 12:08 pm Post subject:

If the lender feels that the loan is getting unsecured due to any change, then the lender can ask for the reverse mortgage repayment. The reason for the change may be -

If the house is rented partly or fully
Any new owner added to the title
Any new debt is taken on the home

As suggested by Samantha, the loan paper is always required to be checked minutely for the conditions and the rules.

James

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