Reverse mortgages are payable only when the last surviving borrower dies, sells the property, permanently moves out or when he reaches the end of the loan period. A permanent move is implied when you, the co-borrower, or a qualifying relative has occupied the home for at least 1 year. If you die, the lender will not be able to take the title if your heirs can repay the loan.
When the loan may be in default
The loan will be in default if:
- You or the co-borrower have filed bankruptcy.
- The borrower donates or abandons the home
- You haven't paid property taxes
- You haven't maintained your home or paid for repairs
- Your home is no longer insured
Moreover, if the loan has an acceleration clause , the lender may require you to pay down the mortgage if:
- A co-owner has been added to the property title
- You have rented out the property to a non-relative
- You have taken a new loan on your home
- You have changed the property's zoning classification
Make sure you check the loan documents so you know what situations will cause your loan to default and your repayments to accelerate.
Related Articles |
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Saundra Gregory
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Post subject: Aging Parent who has a reverse mortgage |
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| My parent has a reverse mortgage. Her mobility is becoming very limited but not to the point of being put into a home. She does however desire to move to an apartment based on her income but with the house, she does not qualify. She would like to sell the house (and of course pay back the loan) but that would also considered funds which would cause her not to qualify. Can the house be put in my name, and the house be put on the market to sell (and repay loan)? That way, my mother will not show any assets from the house. |
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melina
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Post subject: RE |
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| House can be put to your name through quit claim deed and once that is done you can easily sell the house. |
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Saundra Gregory
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Post subject: Quit Claim Deed |
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| Thank you for such rapid response. Would I need a lawyer for a quit claim deed? |
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adonis
Joined: 22 Oct 2005
Posts: 11625
Location: ALASKA
1239.56 Dollars($)
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Post subject: Re |
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You can consult an attorney for that.
_________________
Procrastination is the enemy of your financial success |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1609
Location: MASSACHUSETTS
150.98 Dollars($)
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Post subject: |
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Hi Saundra,
Welcome to MortgageFit Forums.
I would like to know the problem that your mother is facing with the current mortgage. Since, she already has a reverse mortgage which needs not to be paid back during her lifetime, why is she thinking of getting rid of it?
As per the financial condition that you mentioned, I don't think it will be a wise decision for her to move out of the mortgage at this point of time.
If the financial condition improves somehow and other conditions satisfy, then she can make a change.
The house can't be transferred to you with the reverse mortgage due on it and the mortgage is not transferable to you.
She has to repay the loan first if she wants to change the title. You may talk to your lender for a suggestion. If you want my suggestion, then I would stress on continuing with the loan now.
God bless you.
For MortgageFit,
Samantha
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Know how to compare lenders with mortgage booklet |
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Tracy
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Post subject: |
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My grandmother currently has a reverse mortgage. My question is; who exactly are considered heirs? My grandmother has 3 surviving children, none of which would ever qualify to take over the loan in the event of her death. One is on disablility, one is on drugs and the other has no (if ever) employment abd basically does home health care. I would hate to she the government take her home which she owes less than 100,000 and resell it for a huge profit. As her grandaughter what can I do?
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.06 Dollars($)
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Post subject: RE: |
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Hi Tracy,
Welcome to the Forums.
In a reverse mortgage, the term 'heirs' indicate those who will inherit the property after your grandmother as stated in the will. What you can do is ask your grandmother to talk to the lender if he will allow her children to take over the responsibility of paying the mortgage.
Since the children are disabled, drug addict and unemployed, I guess the lender may not accept the proposal. In that case, if your grandmother can transfer her property title in your name, then after she dies you can take over the responsibility of the mortgage. But your grandmother needs to discuss this with her lender.
Thanks,
Caron. |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2982
Location: MICHIGAN
471.25 Dollars($)
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Post subject: RE: |
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Hi,
I think you should sort it out with the lender. You may be allowed to pay the mortgage when your grandmother is no more. But I guess she's doing well, isn't it? So, don't worry, just talk to the lender and know about the process.
For more details on reverse mortgage, please read this section.
Thanks,
Jerry |
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Shawna
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Post subject: house in mothers name |
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| my husband and I live in a house that we got finacial help on. we live in it her name is just on the deed and the loan. she is over 65 and my question is what would happen to our house when she dies if we go with a reverse mortgage? |
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Johnny1
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Post subject: |
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Hello.
The Reverse Mortgage is only payable when the last surviving borrower dies. The heirs can also pay back the reverse mortgage. |
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person
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Post subject: loan limit |
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| what is the loan limit in Giles county virginia |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2936
Location: New Brunswick, New Jersey
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Jo
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Post subject: how to pay back reverse mortgage after last parent dies |
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| Both my parents just died. they had a reverse mortgage for 5 yrs. There are 6 adult heirs. Must the money be repaid in a lump sum, or can we pay back monthly? We don't want to loose the house, nor can anyone afford a mortgage to repay this? |
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susan
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Post subject: how to pay back reverse mortgage after last parent dies |
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| Both my parents just died. they had a reverse mortgage for 5 yrs. There are 6 adult heirs. Must the money be repaid in a lump sum, or can we pay back monthly? We don't want to loose the house, nor can anyone afford a mortgage to repay this? |
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