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'Heirs & Loan Maturity' Category Archives

6-Step Guide to Handling Reverse Mortgage Heirs & Estate Affairs

    71 comments
Inheriting a property is a significant responsibility, especially when it comes with a reverse mortgage attached.  If you find yourself as the heir to a borrower who has passed away, you may feel overwhelmed by the financial and legal complexities that follow. This article will guide you through the steps we recommend following to navigate this situation.  Whether you're considering...
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Reverse Mortgage After Death: What Heirs & Family Must Know.

    249 comments
It seems that one of the most popular questions we get is: What happens with my reverse mortgage and my home after death? When considering a reverse mortgage, an important question many borrowers and their heirs face is what happens to the reverse mortgage and the family home after the borrower's death.  This concern is particularly significant given that reverse...
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5 Ways To Lose Your Home With a Reverse Mortgage

    11 comments
With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower retains ownership of the property while continuing to live there throughout the loan.  They are not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in a reverse mortgage, "the bank takes the home." On...
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How to Sell Your Home If You Have a Reverse Mortgage

    110 comments
Is it true that if an inheritor or owner of a reverse mortgage decides to sell the home and asks for less than the loan amount, the reverse mortgage company holding the note cannot request more than the amount the seller asked for? You have asked a question that covers distinctly different scenarios, and the answer to each scenario...
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Timeframe to Vacate Home After Reverse Mortgage

    73 comments
Hello ARLO, My father passed away in October 2018.  He had a live-in caretaker for several years.  I decided to sell the house in California, while the caretaker is occupying the home to keep the property safe and away from squatters and facilitate the viewing.  One offer from a buyer fell through, and the caretaker approached my agent wanting to...
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Protecting Your Home from Reverse Mortgage Foreclosure Threat

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Dear ARLO, I just returned from the hospital, where my uncle was transported by his neighbor, thinking he was having a heart attack.  My uncle said he almost passed out after receiving a letter from his reverse mortgage lender threatening to foreclose. I was told he may be discharged tomorrow, but I need to quickly step in to help him,...
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How a Reverse Mortgage Deed in Lieu of Foreclosure Works

    66 comments
My mom procured a reverse mortgage when property values were high.  She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy.  The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred...
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Reverse Mortgage Foreclosure Has No Effect on Heirs

    14 comments
My MIL and FIL recently entered a reverse mortgage.  The house is in good shape and worth about $150,000.  I expect they will take a large distribution upfront as well as withdraw monthly amounts until they hit the max dictated by the lender. The large distribution up front coupled with fees, closing costs, mortgage insurance, and interest build means that...
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