What happens if a borrower is unable to pay back the reverse

deborshi_saha · Joined: 13 Jul 2007 Posts: 1 1.29 Dollars($)

What happens if a borrower is unable to pay back the reverse motgage loan?

Guest 0.10 Dollars($)

The lender will take back your property.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Deborshi,

For a reverse mortgage, repayment of the loan is not required until you (or the last surviving spouse) permanently leave the home as a primary residence. If you are unable to pay your property taxes and insurance, then a special set-aside from your reverse mortgage can be created. For that, you need to talk to the lender who will find the right solution for you.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

Deborshi, please go through this page more information about reverse mortgage loans: http://www.mortgagefit.com/reverse.html

Miller

heavenhack7 · Joined: 05 Apr 2007 Posts: 73 0.78 Dollars($)

Reverse Mortgage is A special type of loan used to convert the equity in a home into cash. The money obtained through a reverse mortgage is usually used to provide seniors with financial security in their retirement years.

Investopedia Says: The reverse mortgage is aptly named because the payment stream is reversed. Instead of the borrower making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the borrower. While a reverse mortgage loan is outstanding, the borrower owns the home and holds title to it, without having to make any monthly mortgage payments.

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