Reverse Mortgage Spouse: “Eligible” vs. “Ineligible” Protection

September 18, 2023

Who is an eligible non-borrowing spouse on a reverse mortgage?

Great Question!

There are two types of non-borrowing spouses in a reverse mortgage: eligible and ineligible non-borrowing spouses. To be considered an eligible non-borrowing spouse, you must be married to the borrower when they apply for and close the loan.

As an eligible non-borrowing spouse, you must also meet certain requirements, such as living in the home as your primary residence. If the borrower passes away, you can continue living in the home, but you must keep up with property taxes, insurance, and basic maintenance of the house.

If you’re not already on the title, you will need to obtain it after the borrower passes away. Although you won’t be a borrower on the loan, meaning you can’t access any remaining funds from the reverse mortgage, the loan won’t become due as long as you continue to meet these conditions. This deferral allows you to stay in your home without the immediate burden of repaying the loan.

Table of Contents

• What other changes would have been necessary if HUD had fixed the non-borrowing spouse issue in 2014?

• HUD’s new treatment of non-borrowing spouses

• What spouses are not covered?

• Do you know if there are any other changes or things you need to know?

• Our Recommendations

• Ineligible = No Deferral Granted

• Eligible vs. Ineligible Spouse Protections

• Spouse FAQs

• 2024 HUD Non-Borrowing Spouse Update:

What other changes would have been necessary if HUD had fixed the non-borrowing spouse issue in 2014?

HUD’s rule changes, announced in 2014 and effective in early 2015, did not go far enough to protect spouses. For one, it did not cover any spouses of loans closed before that time. In other words, if you completed a loan before the change, your loan was still due and payable if your borrowing spouse passed.

The changes that took effect in 2015 only covered those loans that closed from that time forward. All spouses of borrowers who received the loan before 2015 were still not covered, and if their spouse passed, even after the HUD changes, their loan was called due and payable at that time.

This was because, with the new changes, all new loans were based on the younger spouse’s age, even though they were not borrowers on loans. Because they had an eligible status for deferral, their age was considered when the loan eligibility was determined.

Loans closed before the underaged spouse was removed from the title did not consider the younger spouse’s age in the age calculation. Therefore, a 77-year-old borrower with a 55-year-old spouse would receive a lot more money before the 2014 changes, but that spouse was also not eligible for deferral of the call provisions when their spouse passed.

Secondly, the rule, written in 2014 and made effective in 2015, did not protect spouses of borrowers forced to leave home due to medical reasons. If the borrowing spouse were forced to go home for more than 12 consecutive months due to the need for hospice care, the loan would be called due and payable by the lender under the HUD rules because the move was considered permanent.

This created many problems for spouses who met all other conditions, but their spouse did not pass but needed to be placed into assisted living for medical reasons. Then, their loan became due and payable under the HUD rules.

HUD’s new treatment of non-borrowing spouses

HUD fixed these issues with its new treatment of non-borrowing spouses as outlined in HUD Mortgagee Letter (ML) 2021-11, further extending protections granted by HUD’s previous guidance on the subject in HUD Mortgagee Letter (ML) 2019-15. Effective immediately, all non-borrowing spouses, not just those whose loans began after the 2014 change date, now have the non-borrowing spouse deferral protection.

This is a considerable comfort and protection for spouses who were not on the loan their spouse received and feared losing their ability to remain in their homes. Furthermore, HUD removed the provision that the loan could still be called due and payable if the borrowing spouse had to leave home for more than 12 months due to medical reasons for all non-borrowing spouses who held this designation at the time the loan was closed.

In other words, the non-borrowing spouse is protected from having to leave their home due to the call provision due to their spouse’s death and the medical need to go home now. This is especially important because HUD determined that they would cover spouses before their age, which was also considered in loan amount calculations, so they got an advantage in the additional funds available.

What spouses are not covered?

For a person to be considered a spouse, the borrower must consider them a spouse and declare them a spouse when the loan is closed. Remember that this still does not cover spouses not married to the borrower when the loan closed. New individuals who became spouses after the loan’s closing are still not covered under the existing reverse mortgage.

In other words, borrowers cannot try to add someone claiming to be a common-law spouse when the loan closed, but they stated they were unmarried. For newly married spouses, the only way to still ensure that the terms of a reverse mortgage cover them, if that is your goal, is to obtain a new loan in both your names or with them being a current “eligible non-borrowing spouse” now at the time you take out the new loan if they are not yet 62 years of age.

Do you know if there are any other changes or things you need to know?

Non-borrowing spouses cannot access the loan after the borrower passes. This means that if funds are still available on the line of credit, they remain unborrowed and do not need to be repaid when the loan is closed, but the non-borrowing spouse cannot make additional draws against the line. The non-borrowing spouse may remain in the home for as long as they desire if they meet the eligibility criteria.

If the non-borrowing spouse does not have title to the property within 90 days of the borrower’s passing, the spouse is no longer required to secure it. This is another improvement, as probate and other issues often stretch transferring title to the remaining spouse beyond the old 90-day requirements by HUD.

Our Recommendations

We recommend that borrowers add the non-borrowing spouse back to the title as soon as the loan closes so that there are no problems later (for those spouses removed from the title before 2015, they are no longer required to be removed as of the 2014 changes). This was more of an issue for the loans closed before 2015 when non-borrowing spouses needed to come off the title, but there is no reason to keep them off the title after the loan closes.

HUD allows borrowers to add anyone they want to title if they are still on title and still living in the home. We also recommend that borrowers write letters authorizing lenders to deal with non-borrowing spouses in all matters relating to the loan so that the non-borrowing spouse has full authorization to deal with the lender on the borrower’s behalf.

If you have a non-borrowing spouse, you should file all paperwork with the lender to allow your spouse full access to the lender and the loan information. In contrast, both spouses are still alive when everyone can sign any required authorization.

To be eligible for deferral of a reverse mortgage, you must be married, live in the home when the loan closes, and still live in the home as your primary residence when the borrowing spouse passes or permanently moves to a medical facility.

Finally, the non-borrowing spouse has the same responsibilities as the borrower regarding the payment of taxes and insurance on time and reasonable maintenance of the home.

An eligible non-borrowing spouse who does this can stay in the home for as long as they live and want to remain.

Ineligible = No Deferral Granted

Ineligible non-borrowing spouses might be those who don’t occupy the property (separated borrowers who do not live in the home), were not married to the borrower at the time the loan was closed, or, because of familial or other issues, cannot get title to the home (perhaps the home goes to other heirs upon the borrower’s death).

They would not be eligible for the deferral; therefore, the loan would be due and payable upon the borrower’s passing. I hope this helps.

Eligible vs. Ineligible Spouse Protections

Status	Criteria	Implications
Eligible Non-Borrowing Spouse	Married to the borrower at the time of loan closing and remains married until the borrower's death.	Can remain in the home after the borrower's death without the loan becoming due, under certain conditions.
Ineligible Non-Borrowing Spouse	Not married to the borrower at the time of loan closing, or the marriage ends before the borrower's death.	May have to vacate the property or pay off the loan upon the borrower's death.

This table distinguishes between scenarios where a spouse is eligible or ineligible for protection of a reverse mortgage loan. This information is critical for borrowers considering a reverse mortgage to understand the protections afforded to current or potentially future non-borrowing spouses.

Spouse FAQs

Do both spouses need to be 62 for a reverse mortgage?

In most instances, the answer is no. Recent HUD rule changes implemented a deferral option for eligible non-borrowing spouses that protects past non-borrowing spouses. This deferral option allows a non-borrowing spouse to live in the property even if the eligible borrowing spouse predeceases them or leaves home for medical reasons. Previously, the non-borrowing spouse would have to pay off the reverse mortgage or potentially move out of the home. Non-HUD-insured reverse mortgages do not allow for deferral periods, and certain states, such as Texas, do not permit a non-borrowing spouse on a reverse mortgage loan.

Can my new spouse be added to my Reverse Mortgage?

No. Your new spouse could not be added if you obtained a reverse mortgage loan before marriage. If you add your new spouse to the title, that does not alter the terms of the existing reverse mortgage, but there would also be no deferral for your spouse because they were not accounted for on the original loan. The only way to protect your new spouse with a reverse mortgage is to refinance to a new loan that would consider both of your ages in the calculations.

What happens if a spouse dies with a reverse mortgage?

What transpires upon the death of one spouse will depend upon several factors, including how the loan was set up initially, who was a borrower, and under what guidelines were in effect at that time. If both spouses were borrowers on the loan, and one spouse is still living in the property after the passing of the other spouse, nothing happens with the loan as a result. The reverse mortgage would not become due and payable until the passing of the last surviving spouse. If the spouse who passed away was the only eligible borrower and the surviving spouse was an ineligible non-borrowing spouse, or if the loan was taken out before HUD implemented the deferral option, the loan would become due and payable. If the surviving spouse was an eligible non-borrowing spouse, was only ineligible because the loan was closed before 2015, and in all other ways would have been an eligible non-borrowing spouse and remained eligible, they can contact their loan servicing and file for the deferral option, and the loan would remain in good standing allowing the surviving spouse to stay in the property for the duration of their lifetime.

What is an eligible non-borrowing spouse?

An eligible non-borrowing spouse is an individual who is married to a reverse mortgage applicant when the loan closes (or the borrower declares he is their married partner) who will not be a borrower of that loan but is living in the subject property as their primary residence. A spouse can be an eligible non-borrowing spouse by choice or due to being under the age of 62. The eligible non-borrowing spouse’s age is factored into the loan-to-value calculation on the reverse mortgage loan because of the deferral option they qualify for. An eligible non-borrowing spouse can become ineligible if they move out of the property when the reverse mortgage is in place. A spouse can start as suitable but become ineligible for deferral over time. Any non-borrowing spouse (whether eligible or ineligible) cannot access any reverse mortgage proceeds during the borrower’s lifetime or after their passing if they are in the deferral period. Only borrowers of the reverse mortgage loan can access loan proceeds.

What is an ineligible non-borrowing spouse?

An ineligible non-borrowing spouse is an individual who is married to a reverse mortgage borrower who does not live in the subject property. Common examples of this are spouses who are separated or who choose to live in separate homes while still being married.

If you have a reverse mortgage and get remarried, how long does your spouse have to stay home when you pass away?

If you get a reverse mortgage loan and then remarry after, your spouse is not eligible for any deferral period afforded to an eligible non-borrowing spouse when the loan was closed. In this instance, they would have the same time as any other heir to get the loan paid off or the property sold. The Mortgage Servicer can grant an extension of time in 90-day increments up to a full year for the heir to sell the home, so that would be the maximum time they could remain in the property while attempting to sell the home.

If one of the spouses dies, can the other stay in the home?

If both spouses are on the loan or one spouse is not on the loan but is an “eligible non-borrowing spouse,” then yes, either spouse can remain in the home for life even after the other spouse passes with a reverse mortgage. The remaining spouse still must pay the taxes and insurance in a timely manner and reasonably maintain the home. If your spouse is not on the loan, was not married to you at the time the loan was closed, or was ineligible for any other reason (wasn’t living in the house, etc.), then that spouse would not have the right to remain in the property after the passing of the borrower. If you wish to make an ineligible spouse eligible to remain in the home, you must apply for a new loan under both individuals’ names, with both spouses on the new loan.

2024 HUD Non-Borrowing Spouse Update:

Proof of marriage is required for an eligible Non-Borrowing Spouse (NBS), with acceptable documentation, including tax returns, a prior deed, or a marriage certificate.

Source

New Protections for Non-Borrowing Spouses in Reverse Mortgages

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126 Comments on this Article

John Q.
October 9th, 2024

So if two spouses apply for a reverse mortgage and together they have assets and a clear title. One spouse age 68 will draw off the other spouses Social Security a short ways down the road. The one spouse is currently 65 and still working. If they apply "now" will the non working spouse be considered a eligible non borrowing spouse. To me that's out of the question if they are not an eligible borrowing spouse, because all the funds will be cut off...unfair and dangerous seems to me
Reply to John
- Michael Branson
  October 17th, 2024
  
  Hello John,
  
  The determining factor for a co-borrower on the loan or the need for a non-borrowing spouse is the borrower's age, not whether they work. In the example you provided, both spouses are over the age of 62 so neither spouse would be considered a non-borrowing spouse as both are eligible to be borrowers and both would be included on the loan. Since both souses are borrowers on the loan, the reverse mortgage would be in effect, and both would have access to all funds for as long as at least one of the two original borrowers still lives in the home as their primary residence and continues to pay their taxes and insurance in a timely manner.
  
  You do not need to worry, neither spouse would ever be cut off from the available funds or be forced to move as long as you remain in compliance with the terms of the loan (live in the home as your primary residence, pay the taxes and insurance in a timely manner and maintain the home in a reasonable manner). I hope this helps!
  
  There are other instances where you can have a non-borrowing spouse so the answer is not 100% correct. I also usually caution that the borrowers do need to continue to meet the loan requirements to be eligible.
  Reply to Michael
Vicki I.
August 18th, 2024

I am 71 with only Social Security income of $822.00 a month. I'm a non-borrowing spouse since my husband took out the reverse mortgage in 2009. He passed away on July 13, 2024. I don't understand a lot of the terms of refinancing a home or buying another home. I have been told that HUD will give me 6 months to sell or refinance; is this true? Am I better off selling the home, paying off the loan, and hoping I have enough left to pay cash for another home? Or is there any way to stay in the home without refinancing? I'm really worried.
Reply to Vicki
- Michael Branson
  August 18th, 2024
  
  Hello Vicki,
  You are in luck! HUD issued a Mortgagee Letter (ML) when they revised their non-borrowing spouse guidelines. Under this change, all non-borrowing spouses who meet certain criteria and whose loans were taken out before the issuance of that ML are automatically eligible for a deferral. In simpler terms, if you were married to your spouse when they received the loan, have lived in the home continuously since that time, and have kept up with property taxes and insurance, you are eligible for the deferral. This means you can remain in the home under the terms of the reverse mortgage as long as you continue to live there as your primary residence, pay the taxes and insurance on time, and maintain the home in a reasonable condition.
  If you were not married to your spouse at the time the reverse mortgage was closed or have not lived in the home continuously since the loan was issued, unfortunately, you would not qualify for this deferral. In that case, you would need to either refinance the loan or sell the home and find another place to live, whether by purchasing or renting. However, if you do meet the criteria, you should prepare to show the lender your status and request the deferral so that you can stay in your home.
  Reply to Michael
Tom H.
April 20th, 2024

Is 62 the minimum age to apply for a reverse mortgage? I read today it is 55... Also, if my spouse is younger than 62, can she be taken off the mortgage before we apply? And do you offer jumbo loans?
Reply to Tom
- Michael Branson
  April 20th, 2024
  
  Hello Tom,
  62 is the minimum age for the HUD program, but there are jumbo or proprietary/private programs available that allow for ages down to 55 in many states (some states still mandate a minimum age for a reverse mortgage, and if you live in a state with a minimum, you would be subject to that minimum age requirement).
  Underaged spouses living in the home can no longer be removed from the title to apply for a reverse mortgage, but you can have them considered an "eligible non-borrowing spouse." They can remain on title, they would not be on the loan, and they would still be able to remain in the home under the terms of the loan even after the borrower passes or must move to assisted living. However, the one downside is that since they are not on the loan, after the borrower leaves the home (passes or moves to assisted living), the non-borrower cannot access any remaining funds on the loan. The spouse can still live in the home under the terms of the loan but since he/she is not a borrower, they cannot sign for future draws if there is still un borrowed money left on the line of credit (only a borrower can do that).
  Also, the amount of money available will be determined based on the younger spouse's age. Since the non-borrowing spouse is allowed to remain in the home for life as well, HUD considers that individual's age in their calculations when determining available funds under the program. Jumbo programs will have their own parameters for removing a spouse and may be more willing to look at individual circumstances to make a decision on whether they will allow a spouse to be removed based on residency, ownership of the property prior to marriage, etc.
  Reply to Michael
Leon
December 8th, 2023

Hi Arlo, after the borrower on the reverse mortgage passes away, can the co-borrowing spouse be added to the title to rent part of the home while residing in the same home and declare taxes to the IRS accordingly?
Reply to Leon
- Michael Branson
  December 8th, 2023
  
  Good Morning,
  
  A co-borrowing spouse should already be in the title. They could only be a co-borrower on the loan if they are also on title. If the spouse is not on the title, they can be added to it at any time, even before the borrowing spouse passes. If the borrower obtained the loan solely and separately, I would still recommend that the spouse be added to the title as soon as possible after the loan closes if that is the plan the couple intends to follow. The loan allows the borrower to add anyone they desire to title with them as long as they are also on the title and continue to live in the home as their primary residence.
  
  It is difficult for me to answer the question as written because, as I stated, a borrowing spouse would already be on title. A non-borrowing spouse would need to determine if they are an eligible non-borrowing spouse. Eligible non-borrowing spouses are eligible for deferral of the call provision of the loan that the lender would exercise upon the borrower's death. If they are on loan, they have no worries and are free to take the same actions with title that they could as a married couple as long as they remain on title and continue to live in the home as their primary residence. I mean that they can put the title into an approved trust, add others to it, etc. And yes, they can rent rooms to someone while still living in the property as long as they are not using the home for commercial use (Air BnB type rentals). Their tax situation is not a concern of the lenders.
  
  If you are changing title, you should investigate the circumstances further before you make any changes to be sure you are not making a change that would affect your loan. Unless you are just changing the vesting to reflect the spouse's single nature, I don't know why you would need or want to change the title, and as I stated, if the spouse is a co-borrower on the loan, that spouse would also be on the title already.
  Reply to Michael
Charlie
September 20th, 2023

Hi Arlo,

My parents did a reverse mortgage (not sure when), and my dad has passed since. My mom remarried 10 years ago and was told to complete a form and return to add her new husband. So should something happen to her, he can stay in the home until he passes. Is this even possible?
Reply to Charlie
- Michael Branson
  September 20th, 2023
  
  Hello Charlie,
  I don't know who is giving this advice to your mom, but that's not exactly true. Your mom owns the home, and she can put him on the title so he can stay in the house, but that does not mean he can stay in the home under the terms of the existing reverse mortgage. Your mom's new husband is not eligible for a deferral under the program. If she was to pass before him, that loan becomes due and payable. To be an eligible non-borrowing spouse under the reverse mortgage program, the spouse must have been married to the borrower when the loan was first closed and lived in the home the entire time. They must continue to reside in the home after the passing of the reverse mortgage borrower. They must continue to abide by the loan conditions (pay the property charges on time, which include taxes, insurance, and any other charges such as HOA dues, if any, and reasonably maintain the home). The spouse must also be able to put the home's title into their name after the borrowing spouse's passing if they still need to be added to the title. So if he was married to your mom when she got the loan but just wasn't on title at the time, and was not on the loan but was living in the home and has been the entire time, he could qualify for deferral now and live in the home under the terms of the loan after she passes. However, since she originally received the loan with another spouse, the new spouse would not qualify for the deferral.
  A new spouse of the borrower, married after the loan closes, is not eligible for a deferred loan status. Even if your mom adds her new spouse to the title, he may own the home at that time, but if she passes, the loan will still become due and payable. He would need to either pay off the loan or sell the property to avoid the lender calling the loan and a possible foreclosure action. If she was speaking with someone at the servicer's office, they might not have understood the entire situation, but he needs to understand that they will not defer the due and sale clause under the circumstances that you have relayed here.
  Reply to Michael
  - David S.
    November 4th, 2023
    
    Before my mother married her husband, they were living together in the same house. He put the house in Reverse Mortgage while they were living together in the house, and years later, they married without her being placed on the reverse mortgage and just recently, he passed away can she still stay there or do she have to move? Also, she still maintains the payments for insurance, taxes, etc.... She also had power of Attorney over her Husband. Are there any programs that may help her, like HUD or other programs?
    Reply to David
    - Michael Branson
      November 7th, 2023
      
      Hello David,
      
      This is a bit tricky because for her to have an absolute right of deferral, the loan would need to be closed while she was the borrower's spouse. However, it never hurts to try. I don't know how he filed his loan paperwork or if he indicated that he was living alone on the property at the time, but if your mom has documentation that she was living in the property before, during, and after the time the loan was closed, she may have established the same rights as an eligible non-borrowing spouse. If that is the case, the lender would allow her a deferral on the call provision of the loan. She would need to have title to the property now even to have a chance to get this waiver. Does she have title to the home now?
      
      I am not an attorney and cannot give her legal advice. If she is not eligible for the waiver, the loan would be called due and payable. Then, she would need to pay the loan balance in full either by refinancing the loan with a new loan or selling the property to retain any equity in the property. There are no payments on the loan, but the fact that she is paying the taxes and insurance in a timely manner will benefit her as that would be a requirement for them to allow the waiver. If it were my mom, I would certainly make sure that the title to the property was in her name at this time and gather the verification that she was living in the home before, during, and since the loan was closed. I would present it to the servicer/lender requesting the waiver of the due on-sale provision under the eligible non-borrowing spouse/partner provision.
      
      That may be all it takes, and the lender may allow her to remain in the home under the terms of the original mortgage as long as she continues to pay the taxes and insurance on time, as well as maintains the home in a reasonable manner. If they balk at that, you may need to consider other alternatives, including contacting an attorney to determine her rights under the HUD rules, a refinance, a sale, etc. I am sorry, I am not aware of your mom's qualifications or other programs available, and that may be more of a regional search for that. I would direct you to the HUD website at hud.gov if it comes to that.
      Reply to Michael
Jerry S.
September 14th, 2023

Both spouses qualify. Both names are on the title. Only one spouse wants the reverse mortgage... what can be done for the one that wants the reverse mortgage?
Reply to Jerry
- Michael Branson
  September 14th, 2023
  
  Hello Jerry,
  A reverse mortgage cannot be closed without the participation of the borrower's spouse. In fact, if there is more than one person on the title, the loan cannot close without the participation of the other person on the title, even if that person is not the borrower's spouse.
  You must take out a loan with the participation, consent, and agreement of all parties with an ownership interest in the home. In the case of a reverse mortgage, spouses must also attend counseling and agree to the loan, especially when it affects the property in which they live.
  Reply to Michael
Billy R.
September 3rd, 2023

Hello Arlo,

I took my HUD reverse mortgage out in 2008. My spouse was too young, if I die can she remain in the house?
Reply to Billy
- Michael Branson
  September 3rd, 2023
  
  Hello Billy,
  
  In 2008, HUD did not have a category known as an eligible non-borrowing spouse. For quite a while, spouses who were not on the reverse mortgage were subject to either having to pay off the loan or moving when the spouse on the loan passed or was forced to move into assisted living. However, HUD has since issued a few Mortgagee Letters updating this rule that allows non-borrowing spouses who were not on the loan and not considered on existing reverse mortgages closed prior to 2014, to receive the same deferral that eligible non-borrowing spouses receive today.
  What that means is that if the Case number was assigned prior to 2014 (which yours was since you closed your loan in 2008 and the Case Number is assigned at the start of the process), and you were either legally married and have remained married this entire time or were engaged in a committed relationship akin to marriage, and she has lived in the home as her primary residence this entire time, then she is also protected under the terms of the reverse mortgage.
  
  If she was not your spouse at the time you got the loan or if she has lived someplace else and only plans to live in the house after you pass, she would not qualify for the deferral and the loan would become due and payable. But if you were married at the time and she has lived in the home continuously, she can continue to live in the home under the terms of the loan (those terms being that she must pay the taxes, insurance, and any property charges such as HOA dues if any, on time and reasonably maintain the home). If there is any money left on the line of credit though, she would not have access to draw any additional funds after you pass as she is not a borrower on the loan.
  Reply to Michael
Fred S.
July 8th, 2023

Hi Arlo!

I am 62, and my wife is 59. All of our numbers will be based on her age, and my understanding is that if we take a fixed mortgage, we would have to take all the money at once, which means one or both of us could outlive the money. If we take an adjustable, then we would receive monthly payments, but if I were to pass before her, she (as an eligible non-borrowing spouse) would not be able to access any additional funds that might be available. So my question is this: could we get a reverse mortgage now and then refinance in 3 years when she turns 62 so that she would be a borrowing spouse and, therefore, eligible to draw from any line of credit we might have? Thank you!
Reply to Fred
- Michael Branson
  July 8th, 2023
  
  Hello Fred,
  Yes, you can refinance when both of you are at or over the minimum age so that you would be considered a borrower rather than your wife being an eligible non-borrowing spouse. You would need to qualify under the terms in effect at that time, which could be more challenging with some interest accrued or if you need to be more diligent in paying your taxes and insurance between now and then. Of course, it could be much easier with more money available to you at that time if your property value were to increase and rates were lower at the time. Unfortunately, no one can tell what the future may hold, and anyone who makes a "guarantee" without telling you all the possibilities and the need to qualify at that time is not helping you.
  Suppose you do the loan now with your wife as the eligible non-borrowing spouse. In that case, the worst case is that she can always live in the home for life as long as she pays the taxes and insurance, even if she should pass unexpectedly. If her income qualifies, she can also refinance later with her reverse mortgage if needed, and a new loan is advantageous.
  Reply to Michael
Bruce H.
June 17th, 2023

Hello Arlo,

We are looking at a reverse mortgage. I am 80 my wife is 67. We are both on the title of our primary home. Its value on the tax rolls is about $2.6M, but the market value is around $4-5M (an appraisal is necessary). My question: if we went forward with an RM, what would you recommend we do to maximize the loan or LOC with regards to whom should be the borrower? Should we remove my spouse from the title and make me the borrower, and when I pass, she takes the title? Or, should she be the borrower, thus reducing the loan, which is undesirable? My question, we want to maximize the loan and protect her to live out her life in the home. BTW, I really like your format! Thank you!
Reply to Bruce
- Michael Branson
  June 17th, 2023
  
  Hello Bruce,
  First, allow me to say thank you for the kind words. Regarding your question, you can't take your wife off the title to get the higher loan amount, as reverse mortgage programs no longer allow this when both are on the title and living in the home. It was allowed years ago, but then multiple lawsuits cropped up when the remaining spouse found that they could not afford to refinance the loan on their own when the older spouse passed and did not have the means or the desire to move. It was causing the forced displacement of the remaining spouse when the loan was called due and payable. HUD and other programs were forced to alter their lending policies to eliminate the ability to remove the younger spouse from the title to allow a larger payout. And because of the hardship it did cause on remaining spouses, I also would never recommend that action even when it was still allowed unless the borrowers had other plans in place that would protect the younger spouse (such as an insurance policy that would pay off the outstanding balance of the reverse mortgage, plans of the remaining spouse to move at that time anyway into a second home the couple already owned or a planned move with family, etc.).
  You have indicated that you would like the higher proceeds available for a borrower at an older age rather than the younger which will be used for married borrowers. However, in the long run, you will both be much happier knowing that your spouse is protected and still able to continue living in the home if anything happens to you. If she decides to sell the home later, she won't lose anything; that would just be that much more equity she will have and be able to use to downsize or for whatever needs she may have. Things are tough enough when you lose a loved one. It is much easier if she is not forced to make a quick decision solely because the loan is now due and payable (not to mention that it may not be a suitable time in the real estate market, and a little time might be better for her and any heirs you may have from a timing standpoint as well).
  Reply to Michael
Dale C.
May 16th, 2023

Arlo, I do not know the origination date of my sister and brother-in-law's reverse mortgage. She had to be removed from the title because she was under 62 years old. she is now 69 and needs to be back on the title, so there is no issue if her husband of 80+ years passes away. The RM provider said she didn't have to worry. However, I feel that she does need to be back on the title. What is the best way to handle this?
Reply to Dale
- Michael Branson
  May 16th, 2023
  
  Hello Dale,
  
  There is no problem adding your sister back to the title at this time. Her husband can record a Grant Deed from himself to himself and his wife. The terms of the loan documents state that he cannot Deed (i.e., transfer or convey) the title to the home in its entirety to someone else. However, if he is also on title and still living in the home, it is within the terms of the loan to add his wife or anyone else to title with him. I also agree with you that they should do so while he is still able. It is always easier to do things like this while both spouses are alive and in good health than to wait until something comes up and suddenly it requires a probate or other court order.
  
  The only thing I recommend is that you enlist the aid of a title company or a title attorney so that you do not do anything that might trigger a reassessment of taxes. There are usually ways to be sure that the title change does not make the taxing authority consider it a taxable event and raise the taxes, and you want to be sure the Deed is drawn and recorded correctly. Then send a copy of the recorded Deed to your lender with a short note to let them know you are only adding the spouse back to title, and all should be good.
  Reply to Michael
J. Neuwirth
May 6th, 2023

Hi Arlo,

I am 82, and my wife is 64. I want a HECM, but my wife does not. Can I still get it if I am the sole owner?
Reply to J.
- Michael Branson
  May 6th, 2023
  
  Good Afternoon,
  
  Your wife does not need to sign the loan documents, but due to the nature of the loan, some level of participation is required by spouses for every reverse mortgage loan, even if you own the property solely. Your spouse must attend the counseling and sign paperwork stating she understands the loan and its terms.
  Reply to Michael
Maureen
April 5th, 2023

Hello Arlo,

Can the non-borrowing eligible surviving spouse will the property or transfer the title through a living trust to an heir upon their death if they were not the original borrower on the reverse mortgage?
Reply to Maureen
- Michael Branson
  April 5th, 2023
  
  Hello Maureen,
  
  The reverse mortgage does not limit the spouse's ability to make any state plans they deem best. You cannot sell the home or give the home to someone else outright before you plan to move, but other than that, you can add anyone to the title with you that you wish; you can leave home to anyone through a will or trust, or your family can sell it under your instructions or based on probate.
  The loan does not determine who gets the house; you do. It would be best to remember that the loan becomes due and payable when you no longer live in the home as your primary residence. Hence, your heirs need to know that they must either refinance or pay the loan off with other funds available to them if they wish to keep the home or sell the house to repay the loan due at that time.
  Reply to Michael
Diane
March 28th, 2023

Hi Arlo,

My husband and I have had our reverse mortgage since 2016. I was too young then to be a co-borrower, so am I an eligible non-borrowing spouse?

My husband now has dementia, and I fear that if I have no choice but to seek nursing home care for him in the future, I won't be able to pay for it without selling the house.

Will I be able to sell before his death if he is in a home?
Reply to Diane
- Michael Branson
  March 28th, 2023
  
  Hello Diane,
  
  The loan will not stop you from selling the home if you decide to do so. The only thing you need to worry about now is how you hold the title. As a non-borrowing spouse, you can choose to stay in the home for life without needing to make a payment on the loan. And as a non-borrowing spouse, you did not need to come off the title to the home to close the loan.
  However, if you are not on the title now, that would be the only reason you might have difficulty selling the house. You see, you cannot sell the property you do not own. If you were not on the title and are still not on the title of the home, you would not have the legal right to sell it.
  
  I suggest that you verify how title is held. I would advise that you contact an estate attorney because there may be an issue with selling the home with just your signature if your husband has not yet passed that he needs to work out.
  For example, if there is no Power of Attorney in place at this time that gives you the power to sell the home even though both of you are on the title or something that goes into effect should one of you become incapacitated, you might need to have the court appoint you as his conservator with this power.
  Your attorney will need to advise you in this area. Once the power of sale is determined, then you would be able to sell the home at any time, and the loan would not hinder that action.
  Reply to Michael
Jackie
February 15th, 2023

Hi Arlo,

My husband and sister-in-law own his parents (deceased) Virginia home. His sister does not live here. My husband needs to get a reverse mortgage. I am not on any title. Why am I having to go for counseling regarding this?
Reply to Jackie
- Michael Branson
  February 15th, 2023
  
  Hello Jackie,
  
  Virginia is not a community property state but is an equitable distribution state. HUD requires spouses of borrowers who will not be on a reverse mortgage to attend the counseling session so that they are aware of the status they will have if their spouse should predecease them.
  Since you are living in the home (your husband cannot get the loan unless the owner occupies the property), if he should pass, that loan becomes due and payable, and you would not be able to stay in the home under the terms of the loan.
  You will be required to attend the counseling as well as sign several disclosures before the loan can close to ensure you and your husband are aware of these provisions well in advance and that you all wish to proceed with the loan anyway so that there are no misunderstandings later.
  Reply to Michael
Debbie M.
January 22nd, 2023

My friend's husband got a reverse mortgage, and she is neither on the title or the loan. She thinks she will be forced to leave the property at his death. Is this correct?
Reply to Debbie
- Michael Branson
  January 22nd, 2023
  
  Hello Debbie,
  If they were married at the time her husband closed the loan, lived in the property at that time and she has lived continuously in the home ever since, HUD has allowed spouses to qualify for a deferred call of the Note if the borrowing spouse passes before her even if they were not considered an eligible non-borrowing spouse at the time the loan closed.
  However, if her spouse closed the loan as a single man and she was not married to him at the time, she would not qualify for a deferral of the call provision of the loan when he permanently leaves the residence.
  If she was married to him and living in the home at the time he closed the loan, she will need to show that she has title to the property after he passes but will be allowed to remain in the home under the terms of the loan.
  She would not have access to any funds left in the line of credit, if any, because she is not a borrower on the loan but also can stay in the home under the terms of the loan (must pay taxes and insurance in a timely manner and maintain the home).
  If they were married later, she did not occupy the property, or she does not have title to the property when he passes, the loan will become due and payable at that time. Whether she needs to move, refinance the loan or what other options are open to her would depend upon her circumstances.
  Reply to Michael
Charles M.
December 5th, 2022

Hi Arlo,

Your article states: Any non-borrowing spouse (whether eligible or ineligible) cannot access any reverse mortgage proceeds during the borrower's lifetime or after their passing if they are in the deferral period. Only borrowers of the reverse mortgage loan can access loan proceeds. Scenario: Borrowing Spouse passes, Non-Borrowing Spouse desires to access funds (Accumulated Equity - Borrowers Portion of Accumulated Appreciation), Non-Borrowing Spouse must sell property, payoff Reverse Balance, receive remainder (if any), and move on. Correct?
Reply to Charles
- Michael Branson
  December 5th, 2022
  
  Hello Charles,
  You are correct. If the non-borrowing spouse wanted/needed to access more of the property's equity after the borrower on the reverse mortgage permanently left the home (I.e., due to death), would need to pay off the reverse mortgage such as with a refinance. They could always sell the property and use the equity as they choose.
  Reply to Michael
Gayle E.
September 27th, 2022

Hello Arlo,

We did a reverse mortgage but my husband just informed me I am not on the deed. What can be done?
Reply to Gayle
- Michael Branson
  September 27th, 2022
  
  Hello Gayle,
  
  He can add you to title any time and that will not affect the loan at all. The question is when was the loan closed and were you married at the time, he got the loan? If you are an eligible non-borrowing spouse, just have him add you to title and if anything happens to him, you can remain in the home under the terms of the loan.
  If for some reason you are an ineligible non-borrowing spouse (i.e., you were not married at the time the loan closed, you did not live in the property. Etc.), he can still add you to title, and that will protect you from any issues with ownership if something happens to him, but the loan will still be called due and payable at that time.
  The only way to make certain that you can continue to live in the home after he passes if you are a non-eligible spouse would be to refinance the loan now with you as a co-borrower or an eligible non-borrowing spouse. If you are not sure, you should contact us and let us determine your status on the existing loan.
  Reply to Michael
Juanita S.
September 14th, 2022

My husband & I paid cash for our home. If we do a reverse mortgage, what happens when I die?
Reply to Juanita
- Michael Branson
  September 14th, 2022
  
  Yes, you can. Your husband would still occupy the home (or vice versa if he passed first) under the terms of the loan. The loan become due when both of you are no longer living in the home.
  Reply to Michael
Sterling P.
August 17th, 2022

My wife and I own our house (both are on title). We'd like to do a Quit Claim so that I am the only title holder. Then I'll do a reverse mortgage and gift that amount to her. What sort of complications should we be aware of?
Reply to Sterling
- Michael Branson
  August 17th, 2022
  
  Good Afternoon,
  
  I'm trying to think this through because this is one of those questions that I am sure will have some ramification I can't anticipate with just the information presented. For example, if you are not located in the state of Texas, you are free to drop one or the other of you from title and do the loan in just one name or the other (Texas heirship laws do not allow this).
  However, since she is living in the property which will have the reverse mortgage, she would be considered an eligible non-borrowing spouse which means that her age will still be used to determine benefit amount so there really is no benefit to dropping her - even if she is younger, you will not receive more money.
  
  I do not want to make any assumptions, but if you both plan to separate after the closing and this is money being used to buy her out y9ou should know that your initial draw (initial being at closing and in the first 12 months) will be limited to that amount required to pay off any existing liens, the costs to get the loans and whatever additional cash you want up to 60% of the total reverse mortgage Principal Limit (the loan amount available to you).
  In other words, if your available principal limit is $300,000 and it takes $150,000 to pay off your existing loan plus your fees to get the reverse mortgage, you will have an additional $30,000 available to you in the first 12 months (60% of the Principal Limit is $180,000). There would only be $30,000 available to draw in the first 12 months with the remaining funds available any time after that.
  If the payoff of the current mortgage liens/costs to get the loan or a combination of the two put you at 60% or more of the available Principal Limit, then HUD will allow you to take up to an additional 10% of your loan amount to a maximum of the full Principal Limit but I don't know how that would affect the draws you desire.
  I also don't know how that delay would affect your plans if you had to wait the additional 12 months before you could take the full amount you desire after your spouse signed a Quit Claim Deed and before you could give her the funds you plan to give her.
  Reply to Michael
Michael H.
August 2nd, 2022

Hello Arlo,

I am a disabled veteran age 73 and my wife is 62. She is not on the deed or reverse mortgage. I got the mortgage when I was 62. How can I make sure she and my daughter can stay in the house? We were married in 1989. Thank you!
Reply to Michael
- Michael Branson
  August 2nd, 2022
  
  Hello Michael,
  
  Unfortunately, since you were not married at the time you originally closed the loan, shoe does not qualify as a non-borrowing spouse. The only way to ensure that she can remain in the home under the terms of an active reverse mortgage now would be to refinance the loan under today's terms with both of you on the loan (and adding her to title).
  There are potential challenges to doing this. If you took a lump sum draw, you may have accrued a good amount of interest over the past 11 years. The good news is that since you took the loan when you were 62 and she is now 62, you would be starting at the same age base (62-year-old borrower) and depending on where you live, many properties have experienced quite a bit of appreciation over the past 11 years.
  Also, the HUD maximum lending limit in 2011 was $625,500 and it is now $970,800 so if you live in an area where home prices are over $625,500, you will now be able to benefit from the additional equity in your home as well and that will help.
  
  The bottom line is that you need to visit an online calculator to see what you might be able to expect from a new reverse mortgage in both your names at this time.
  Your timing is also good in that rates have seen a dip in the last week which and since rates are one of the major factors that determine how much money you can receive with a reverse mortgage, that may also help you to get enough to pay off your current reverse mortgage and possibly access even more cash.
  Reply to Michael
Walter M.
August 2nd, 2022

Hi Arlo. Both my wife and I are on the deed. I do not want a reverse mortgage but my spouse does. Can she do this without me signing? Thank you!
Reply to Walter
- Michael Branson
  August 2nd, 2022
  
  Hello Walter,
  
  When there is more than one title holder on a property, all persons on the title must agree to the loan and participate in the loan process. Your wife cannot get the loan without your knowledge and consent (signatures).
  Reply to Michael
Joanne S.
June 28th, 2022

My husband just past, recently. We were both listed as lenders. Does this info need to be reported? If so, who do I notify.
Reply to Joanne
- Michael Branson
  June 28th, 2022
  
  Hello Joanne,
  
  My condolences to you regarding your husband passing. Since you are both listed as borrowers on the loan, there are no reporting requirements and you can continue to live in the home with no issues.
  Just remember to continue to pay the taxes and insurance on time and don't forget to return the annual occupancy certificate in a timely manner to your loan servicing department.
  Reply to Michael
Erin F.
June 16th, 2022

Hi Arlo, I got married after the reverse mortgage closing. How to add my spouse to be protected in the event of my death?
Reply to Erin
- Michael Branson
  June 16th, 2022
  
  Hello Erin,
  
  There is no way to add another individual to an existing reverse mortgage. If you wish to add an individual who was not your spouse at the time you received your original loan to a property you own, you would need to add them to title and refinance the loan with a new loan that included both spouses.
  You can add them to title at any time as long as you are also on title as well, but that does not prevent the lender or HUD from calling the loan due and payable when you permanently leave the home (as would be the case if you passed before them or had to leave to live permanently in a nursing facility).
  Changing the title to add them would help them to be able to finance or sell the property at that time but the only way to be certain that they could continue to live in the property without having to make a mortgage payment is to refinance the loan now with both your names on the new loan. If you have family members or other concerns, you may want to get your family attorney involved and discuss other options as well including trusts, wills, etc.
  Reply to Michael
Michael Branson
April 27th, 2022

Hello Elijah,

There are two classes of non-borrowing spouses. One is an eligible non-borrowing spouse and one is an ineligible non-borrowing spouse. To become an eligible non-borrowing spouse, the spouse must be married to the borrower at the time the borrower applies for and closes the loan.
They must also meet all the requirements of the reverse mortgage that the borrower must meet in that they must live in the home as their primary residence and if the borrower passes and they are still living in the home, they must continue to pay the taxes and insurance in a timely manner. They must maintain the home in a reasonable manner.
If they are not on title before that time, they must obtain title after the borrower passes. The eligible spouse is not a borrower on the loan so they do not have access to the loan proceeds if there are still funds available on the line of credit when the borrower passes, but the loan is not due and payable at that time, it is deferred for as long as the eligible spouse continues to meet these conditions.
Reply to Michael
Douglas G.
February 9th, 2022

In New York State do both the husband and wife who own the home have to sign for a reverse mortgage, and if only one can sign are there any requirements on the NBS at closing?
Reply to Douglas
- Michael Branson
  February 9th, 2022
  
  Hello Douglas,
  
  We are not licensed in New York and so I am hesitant to give you information in a state in which I have never held a license. I read about some updates that New York did on their regulations in 2020 and I honestly do not know if they affected non-borrowing spouses or not.
  I would encourage you to speak to a few different sources to find the answers you seek. You can talk to one of the HUD-approved counseling agencies in the state, to a licensed lender in New York, and also to an attorney who specializes in real estate law in New York.
  My guess would be that both spouses would be required to sign the legal documents and the non-borrowing spouse would be involved as well as they are in other states to be covered in the instance that the borrowing spouse passed first, but I don't know that for a fact and in Texas for example, you can't even have a non-borrowing spouse situation.
  For this reason, I would strongly suggest that you verify with the correct sources and get the answers to all your questions in advance.
  Reply to Michael
Carole
December 7th, 2021

California lets some seniors defer property tax payments, collecting the unpaid tax by some means after the taxpayer dies. Would engaging in a deferred property tax agreement with the state, whether before or after getting a reverse mortgage (RM), count as non-payment of property tax and therefore prevent or cancel a RM?
Reply to Carole
- Michael Branson
  December 16th, 2021
  
  Hello Carole,
  
  Borrowers with reverse mortgages may not participate in tax deferral programs and this is specifically stated in the loan documents.
  If the particular tax program allows for the non-payment or reduction of taxes, that's fine but if taxes are accruing and are due but are delayed, the deferral is not allowed under the reverse mortgage program.
  Reply to Michael
Carol
November 6th, 2021

My spouse is deceased, I am a qualified non-borrowing spouse under the old rules of younger spouse name removed. I added my name back on as non-borrowing spouse after his death.
All is well with HUD.

Questionshould I remarry to a new husband as I am a non-borrowing aka
non-qualifying spousecan I marry and still remain in home until I pass? I do understand new spouse has no rights. Worried I may be asked to remove myself from home once remarried. HUD "Deferred Rules" do not explain this
Reply to Carol
- Michael Branson
  November 7th, 2021
  
  My spouse is deceased, I am a qualified non-borrowing spouse under the old rules of younger spouse name removed. I added my name back on as non-borrowing spouse after his death. All is well with HUD.
  Should I remarry to a new husband as I am a non-borrowing aka
  non-qualifying spouse, can I marry and still remain in home until I pass? I do understand new spouse has no rights. Worried I may be asked to remove myself from home once remarried. HUD "Deferred Rules" do not explain this
  Reply to Michael
- Michael Branson
  November 7th, 2021
  
  Hello Carol,
  
  Your marital status or even whether you choose to have other family members move in with you is not a factor of the deferral. You just need to be sure that you meet all the loan requirements, that you live in the home as your primary residence, that you pay all property charges in a timely manner (taxes, insurance, any other charges due i.e., any HOA dues etc.) and maintain the home in a reasonable manner.
  Reply to Michael
Debi A.
July 19th, 2021

I am 50 my spouse is 68 we are thinking of taking a reverse mortgage out under his name. Currently he us the only one on the mortgage. If we take out a reverse mortgage what happens with it if he dies?
Reply to Debi
- Michael Branson
  July 19th, 2021
  
  Hello Debi,
  
  There are only one or two states that will not allow a reverse mortgage with an underaged spouse (underaged meaning not yet 62) and Texas is the biggest one that comes to mind.
  If you do not live in Texas of another state that does not allow it, you would be considered an "eligible non-borrowing spouse". This means that you would not be on the loan and if something happens to your husband while there are still funds left unborrowed on the line of credit, you will not have access to those funds.
  However, you would be able to remain living in the home under the terms of the loan for life as well which means that as long as you pay the taxes and insurance in a timely manner and you continue to live in the home as your primary residence, you would not be required to make any repayments on the loan for as long as you live in the property.
  
  The other thing that you would need to be able to do is to acquire title at that time if you did not do so before. In other words, your husband could add you to title at any time (and even before the loan closed) but if you did not do that before he passed, you would need to be able to have the title placed into your name quickly.
  Unless there are some reason you folks do not want you to be on title, I recommend that you add you to title as soon as practical because it is much easier to do it while you are both alive and able to sign documents that to wait until something happens.
  Reply to Michael
Jean C.
June 29th, 2021

Spouse deceased, I was co-owner moved out of property foreclosing. Can they attach my bank account etc.?
Reply to Jean
- Michael Branson
  June 29th, 2021
  
  Hello Jean,
  
  The reverse mortgage is a non-recourse loan. The lender can only look to the property for security of the loan.
  If you as the co-owner or another heir do not step in and sell the property to try to retain any equity, the lender will foreclose to take possession of the property and that is their only action available.
  They cannot come after you, the estate, or any other assets.
  Reply to Michael
Pilar Y.
June 18th, 2021

If the husband, had he's wife sign a Quit Claim on their home and he turned around and took out a Reverse Mortgage on the home, In case the husband died before the wife can the wife still remain in the home until she does?
Reply to Pilar
- Michael Branson
  June 18th, 2021
  
  Hello Pilar,
  
  If the wife is an eligible non-borrowing spouse which means that she was living in the home when the loan was closed and has been living in the home constantly since, then she would need to be able to get title back after the husband passed but would be able to remain in the home under a deferral of the clause that would normally cause the loan to be due and payable.
  However, if she is living in the home and the husband and wife are married at the time, HUD will require that she be considered an eligible non-borrowing spouse and her age would be considered for determination of the loan anyway. There really is no benefit to removing the spouse from title as far as the loan is concerned.
  
  Prior to 2015, borrowers with younger spouses would sometimes remove the younger spouse from title so that just the older borrower's age would be considered in the loan determination.
  HUD changed that with the program changes in 2014 that went into effect in 2015 and now, unless the spouse is simply not eligible, their age is considered in the reverse mortgage calculations as well if they are living in the home, even if they are under the age of 62.
  Reply to Michael
William T.
March 3rd, 2021

I am a non-borrowing spouse (NBS). 2008 for the reverse mortgage my name taken off. 2016 My spouse passed away. 2021 RM still writing me I am in default due to death. RM told me that in March 2020 RM ruled me ineligible NBS because of new HEMC guidelines and I am in default. I was forced to hire an attorney. 2021. I have 2008 certification counseling letter and lived-in home all the time. My lawyer sent them letter I am eligible NBS by HECM law. My name not being put back on the deed, as I think the RM lender must put my name back on, can stay in my home?
Reply to William
- Michael Branson
  March 4th, 2021
  
  Hello William,
  
  I am not an attorney and don't know what HECM "law" you are referring to that automatically makes you an eligible for NBS status on a loan originated in 2008. I can tell you that the reverse mortgage lender does not take anyone off title or put them back on, only the owners of the property can do that.
  In 2008, you and your spouse signed a Deed to remove your name from title so that you could get the reverse mortgage loan. That Deed is usually signed either through title or an attorney, the lender did not remove you.
  Under the terms of the loan, your spouse could have added you back to title at any time if your spouse were also on title and still lived in the property and those terms are specifically spelled out in your loan documents. The lender does not prohibit you from being added back to title, but the lender cannot add you to title now (or anyone else for that matter) because only an owner of the property can add someone else to title.
  
  Now you have a situation where your spouse in not available to sign a new Deed to add you back to title. If you had not changed the title to add your name back to title before your spouse passed, you have a whole new set of issues you need to resolve.
  But HUD did not have an eligible non-borrowing spouse designation until 2014 and so loans closed prior to 2015 when this became effective, contained a due and payable clause when the borrowing spouse no longer lived in the home as their primary residence.
  In fact, there is no mention of a non-borrowing spouse in the loan documents because the status did not exist, and you were not part of the transaction because you and your spouse removed you from title and your spouse took the loan individually.
  The best thing that could have happened would have been for you and your spouse to refinance any time after 2014 you either being a co-borrowing spouse if you were 62 or over or as an eligible non-borrowing spouse if you were still not 62 at the time. That obviously did not happen, but I mention that now for anyone else who is reading who may be in the same situation.
  If you have an existing loan on which you are not an eligible non-borrowing spouse and the loan was closed prior to 2015, I urge you to look into refinancing at this time to gain the protections the program now affords all spouses.
  
  Getting back to your situation, are you 62 or over currently? If so, I would suggest that you consider looking at doing a new loan in your name. The loan limits have risen since then and hopefully your home has appreciated as well. The lender will not "put your name back on" title as you suggest at this time as this is not even within their control.
  You would need to have the title changed through a legal document or court order now (a Deed previously prepared, a will or trust, or a court probate) that grants you the title and the lender has no say in who the title goes to. Then there is the issue of the loan being due and payable even when you do sort out the title.
  The title and the loan being due and payable are separate issues that both need to be resolved. If you cannot get a reverse mortgage of your own, you would need to obtain other financing in your name, pay the loan off with funds available to you or sell the home. I cannot give you legal advice, but you need to know that the title to the property needs to be resolved for any actions (other financing or sale) and so clearing the title in your name is of paramount importance.
  All the disclosures you signed in 2008 disclosed what the ramifications would be if your spouse passed, including that the loan would become due and payable and this is what they will now be pushing to do.
  
  Your attorney can give you legal advice. My suggestion is that you cover yourself for all eventualities and protect your title. I suggest that you take immediate steps to move that into your name which might require a probate or other actions. I don't know what your circumstances will require but it is not the lender that will need to do it, it is up to you.
  Hopefully, you and your spouse set up provisions for the passing of the title in the event of death, but you need to file whatever documents are necessary and follow the laws and procedures in accordance with the heirship laws of the state where the property is located.
  Again, I cannot tell you what steps you need to take to perfect your title, just that you need to do it and your attorney should be able to help you with that as well.
  Reply to Michael
Ruqayyah C.
February 15th, 2021

Can a nonborrowing spouse leave or sell the house to another person when they die?
Reply to Ruqayyah
- Michael Branson
  February 15th, 2021
  
  Hello Ruqayyah,
  
  The lender does not own the property, they only have a loan on the house. The loan does not dictate to whom the owners of the property can sell or leave the home in a will, etc.
  If they are still on title with the borrowing spouse, there are children from other marriages in a state with strong heirship laws or there are other title issues apart from the mortgage, there may be other heirship issues that have nothing to do with the loan but that would depend on your title and state laws, not the reverse mortgage.
  Reply to Michael
PATTY P.
February 8th, 2021

HUSBAND DIED NOV.21,2020. HAS HAD COUPLE R.MTGS. RECENTLY FOUND ALL THIS OUT. WELLS FARGO MTG. R.MTG. PD.OFF MANY YRS AGO. (APPROX.2006).NEW ONE 2-3 YRS.AGO I GUESS BOUGHT OUT BY NEW CO. KEPT BUS.TO HIMSELF, MOST ALL I KNOW LEARNED SINCE NOV. ON MY OWN. HE DECIDED IN 2018 IN CASE SOMETHING HAPPENED TO HIM, WE SHOULD GET MARRIED AFTER 20YRS. I KNOW HE HAS A REV.MTG.150,00..THEY ARE BREATHING DOWN MY NECK. AM I ELIGIBLE FOR NON-BORROWING SPOUSE? TY PATTY PIERRY.
Reply to PATTY
- Michael Branson
  February 9th, 2021
  
  Hello Patty,
  
  You are eligible for non-borrowing spouse status at the time the loan is closed if you meet the criteria and it sounds like you might have met it.
  For your spouse to get a reverse mortgage without you on the loan as well, he would have had to sign an affidavit stating no one else had any rights to the title of the home and you would not have been on the title at the time.
  In addition, the lender would be looking for signs such as joint credit on the credit report, joint bank accounts, etc. and then if you were older or the same age, there would have been no reason not to add you to the title and to the loan. If you are younger, then the proceeds would have been affected and that would be another situation.
  If you were living in the home as husband and wife prior to the issuance of the loan, I would suggest you send whatever documentation you have to the lender and request consideration, but I honestly do not know what will happen.
  
  If you were not considered for the loan and you did live in the home, that means that information was not only not disclosed to the lender, but specific questions were answered falsely, and I do not know what recourse is now available.
  It could be that you have all the right in the world to the title of the home, but it probably means that you are going to need to get a new loan in your own name now, whether that is a forward or reverse mortgage.
  Reply to Michael
Gary T.
January 13th, 2021

Is common law the same as being married?
Reply to Gary
- Michael Branson
  January 13th, 2021
  
  Hello Gary,
  I cannot give you a legal answer on this. I can tell you that if you are both listed as owners and apply jointly for a reverse mortgage, then you would both be treated as owners on the loan and it does not matter if you are married or not.
  If you indicate on the loan application that you are married (common law, in a court room, in a church or otherwise), that is, you both consider yourselves married and wish to apply as such, the lender will not request a marriage certificate.
  As far as other legal distinctions and what it could mean for heirs, etc., you really should seek the advice of an attorney practicing in those states.
  Reply to Michael
Ed
December 8th, 2020

Hello, I am 62 years old and my wife is 56 years old. We live in California. Do we qualify for reverse mortgage?

If so, would my wife's age factor into the borrowing amount?

Thanks in advance!
Reply to Ed
- Michael Branson
  December 9th, 2020
  
  Hello Ed,
  
  The answer to each question is yes. You can get the loan and your wire's age will be considered for the amount you receive.
  She will be an "eligible non-borrowing spouse" which means that she will not be on the loan but will have coverage under the loan and it will allow her to live in the home for the rest of her life as well as you if you should pass before her.
  There are some instances though that you need to consider that are important considerations.
  Firstly, she is not on the loan and so if you die before the loan has been completely disbursed (in other words, there are still loan proceeds left available in the line of credit when you pass), she is not a borrower on the loan and therefore she cannot access any remaining funds.
  Secondly, if you leave the home for any reason other than death, she does not have the same protection and the lender will call the loan due and payable.
  
  This second provision is one with which we do not agree but this is HUD's program, and they make the rules.
  The time that this can be particularly troublesome to us is if the borrower does not pass but rather must leave the home for medical reasons.
  In this instance, the non-borrowing spouse is not protected under the terms of the loan and the loan provisions in the documents you both sign state that the loan would be called due and payable at that time.
  We believe HUD ought to change the language in the loan documents to include protection to spouses when the borrowing spouse leaves the home due to death or because of medical reasons (i.e., must move to permanent assisted living) but that is not the case at this time so you must make your decision whether to proceed based on knowing this information.
  Reply to Michael
Peggy B.
December 8th, 2020

I did contact a lawyer like you advised right after they started the foreclosure. So far, he has only asked for 2 extensions and that is it. When I try to discuss the case with him, he starts screaming at me threatens he is going to drop me. He also says that they are going to foreclose regardless. I signed the eligible non-borrowing spouse certificate when we did the loan, but the servicer did not honor it I do not know what to do. I am afraid the lawyer is going to lose my home. I have no money left to hire someone else I need someone that is ethical to help me.
Reply to Peggy
- Michael Branson
  December 8th, 2020
  
  Hello Peggy,
  
  I sincerely wish I could be of more help, but we are a reverse mortgage lender. We do our best to provide answers about the loan program and give as much insight into some of the more common issues that people run into both before and after they get a reverse mortgage.
  However, we are not licensed to give legal advice and in fact, are prohibited by our licensing laws from giving either legal or accounting advice unless we are also licensed to do so and are acting in that capacity and we do not hold either an accounting or law license.
  When you present a question to us such as this that pertains to legal recourse and really needs a legal review of the documents you signed as well as the information you have received from the lender, we have no choice but to suggest to you that you talk to an attorney. It is not just our preference; it is the law.
  
  I do not have a list of attorneys in every state to whom I can refer you so I really can't give you a firm recommendation there either.
  I can give you the information for the Consumer Financial Protection Bureau so that you can submit a complaint and that can be found here: https://www.consumerfinance.gov/complaint/ , the Federal Trade Commission (FTC) if you feel that you have been scammed with false information which can be found here: https://www.ftc.gov/ and also advise you to contact your state directly by looking up the information for their consumer protection division on their website but it has been my experience that most government agencies move slowly and you sound like you need help sooner rather than later.
  But I would still advise you to try everything. You can also file complaints against your attorney with your state bar association if he has taken your money, but he is not representing you but again, I do not know where that will ultimately get you.
  The other suggestions I have are to check with local senior advocacy groups (possibly AARP or others) to see if there are elder law attorneys who may work with you for reduced or no costs but again, we have no ability to represent a borrower against another lender in such a case and I would never represent that we could.
  
  I do wish you success in your endeavors, but I am afraid we are not a resource for this type of desired action.
  Reply to Michael
Tammy
September 20th, 2020

Do you have to be listed as a non-borrower even if you were living as common law before the reverse mortgage and have been all the way till the death of your common law spouse do u have to leave your only home?
Reply to Tammy
- Michael Branson
  September 20th, 2020
  
  Hello Tammy,
  
  If you were also on title, were 62 and or over and lived in the home you would not need to be married to the other individual to also be included on the loan.
  The spouse requirements are only considered when one of the two individuals are not yet 62 years of age and then there are considerations depending on the status of the "common law" and the state in which you live.
  If this is what happened to you, part might depend on the status your significant other claimed when that individual applied for the loan.
  Did they claim they were married or single?
  Were you 62 and over or under the required age?
  You may want to approach the lender with these questions.
  Reply to Michael
  - Tammy
    October 9th, 2020
    
    No I was younger 55 and he was 75 and I was not on the title but he picked single I dont think he understood that common law would count I dont' believe he understood that he had allready started developing parkinson at that time but we had lived as husband and wife for a few years allready before the loan and he and I and everyone knew us to be husband and wife but he thought I was gonna be protected because of that and also because I was gonna be the sole 1 2 inherit the home and at the time he did the loan I was not aware of any of this .Because had I been it would not have happened . I dont believe he was counseled enough to understand that because he would have never left me out in the cold like that he would be rolling over in his grave if he thought I was gonna be facing homelessness the loan originated in 2018 he received 8,000 in cash total now its Oct.2020 and the balance is 25,000 and our home sold at 149,000 in 2004 but now the estimate is only 80,000 due to the market
    Reply to Tammy
  - TAMMY
    October 9th, 2020
    
    Also my state is Alabama and we lived together before they changed the law in Alabama concerning common law
    Reply to TAMMY
Clive C.
September 14th, 2020

I am applying for a reverse mortgage and am married; however, my wife is younger and would be considered a non-borrowing spouse. My name is on the deed of trust. does the deed have to be in both names even though she is a non-borrowing spouse?
Reply to Clive
- Michael Branson
  September 14th, 2020
  
  Hello Clive,
  
  This answer depends on a couple of things. The first is the state in which you live. For example, if you live in the state of Texas and are married, you cannot do a reverse mortgage with a non-borrowing spouse.
  The next question would be does your spouse also live in the property? If so, your spouse must also be on the title and be considered as an eligible non-borrowing spouse. Her age will also be considered in the calculations for the loan.
  Finally, if your spouse does not live in the property as her primary residence, you do not need to add her to title if you do not wish as she would be considered an ineligible non-borrowing spouse and would not have the right to remain in the property under the terms of the reverse mortgage if anything happened to you anyway.
  In that case, the loan would become due and payable should you ever permanently leave the home even if she moved into it later.
  If she does occupy the home and you do want her covered under the terms of the reverse mortgage so that she can also live in the home for the rest of her life without having to make a mortgage payment, you would need to have her added to title.
  Reply to Michael
Leesa F.
September 1st, 2020

Can I be put back on ownership to a home that my spouse took a reverse mortgage on? It has been 3 years since it closed, and I had to be removed due to my age and his qualification. We both purchased the home originally in 1998. We have a 10-year age gap.
Reply to Leesa
- Michael Branson
  September 1st, 2020
  
  Hello Leesa,
  If your spouse remains on title as well, he can add you to title with him at any time. In fact, I recommend you do so.
  Remember, the loan becomes due and payable if anything happens that would keep your husband from being able to live in the home and you will need to refinance the loan or sell the property at that time and you cannot do either if you are not on title.
  I would also recommend your husband write an authorization letter to the lender now giving you authorization to speak to the lender and the lender to you on all matters related to the loan.
  Many heirs are frustrated when they try to talk to the lender and the lender is unable to give them any information about the loan because they have no authorization due to financial privacy laws.
  It is easy to resolve that now but frustrating if you wait until it is too late.
  Reply to Michael
Cali
August 16th, 2020

My husband is 68 and is trying to get a reverse mortgage without my permission and against my will. I am on the Title but not on the current mortgage loan. Can he get this done without my consent in California?
Reply to Cali
- Michael Branson
  August 16th, 2020
  
  Good Morning,
  
  If you are also on title to the home, he should not be able to secure the property with any lien without your participation.
  Even if you were not on title, as a married individual, if you live in the home with your spouse in CA, he cannot get the loan without you as a co-borrower or an eligible non-borrowing spouse.
  If you do not live in the home but are still married, he still cannot get the loan without your participation as you must also be counseled and must sign several of the documents acknowledging the terms of the loan.
  So, either way, a married individual in CA must have some participation of their spouse to obtain a reverse mortgage.
  Reply to Michael
Pamela W.
July 7th, 2020

My husband is 67, I am 48, my husband is not on the loan, can I still do a reverse mortgage?
Reply to Pamela
- Michael Branson
  July 7th, 2020
  
  Hello Pamela,
  
  It does not make any difference who is on the loan now, you can do the loan with your husband, but you will be a non-borrowing spouse.
  Your husband can get the loan and you will not be on the loan itself but would be an eligible non-borrowing spouse which means that you can also live in the home for life under the same requirements of the loan.
  The one thing you must remember though is that you will not be on the loan as a borrower so if anything happens to your husband and there is still money left on a line of credit, you would not have access to that line after your husband no longer lives in the home as his primary residence.
  Reply to Michael
Ron
May 17th, 2020

Arlo, you frequently mention the cons of ineligible non-borrowers on a HECM, but what about the impact of the available LOC due to difference in age? For example, my wife is 53 and I am 67, doesn't that affect the available % of funding and LOC amount? I have looked at HUD's PLF table, but it is still a bit confusing. From what I have read, a non-borrower under age 62 factors into the amount of funding you can get. Thanks.
Reply to Ron
- Michael Branson
  May 17th, 2020
  
  Hello Ron,
  
  An eligible non-borrowing spouse is one who also can live in the home for life, even if the borrower predeceases the eligible non-borrowing spouse, under the terms of the existing reverse mortgage. That being the case, that person's age is also considered in the factors to determine the loan amount.
  After all, if the eligible, non-borrowing spouse were just 35 years of age, it is not inconceivable that he/she could live another 27 years longer than the typical reverse mortgage borrower whose minimum age must be 62.
  Therefore, the amount of money available to that couple would be less at the start as the interest possibly accruing over the life of the loan statistically speaking would be much greater. That is the whole premise of loan amounts being greater for older borrowers under the program. A borrower age 62 receives a lower benefit than a borrower age 82 for the same reason.
  
  However, if the spouse is deemed "ineligible" for any reason at origination (i.e. they don't live in the home), then they do not have the same lifetime coverage under the program parameters and therefore, the only age used for determining benefits would be the borrowing spouse.
  The age of an ineligible spouse is not considered in the calculations as they cannot remain in the home under the terms of the existing loan when the borrowing spouse passes. If the borrowing spouse passes in this situation with an ineligible non-borrowing spouse, the loan becomes due and payable.
  There is no opportunity to remain in the home for life under the terms of the existing loan as an ineligible non-borrowing spouse is the case with an eligible non-borrowing spouse. This would be true even if the ineligible spouse had since moved into the home.
  The spouse would have had to be considered an eligible non-borrowing spouse when the loan was originated and must still be eligible when the borrowing spouse passes in order to be able to remain in the home under the original loan terms.
  
  And you are correct, loan amounts for loans with an eligible non-borrowing spouse will be determined by the age of the younger spouse which in your case would drop down to the amount available based on your 53 year old spouse.
  The good thing is that your spouse is covered and may live in the home mortgage payment free for life as long as she continues to occupy the home as her primary residence, pays the taxes and insurance when due (plus any other property charges such as HOA dues if any) and maintains the home in a reasonable manner.
  The downside I warn about in this case is that if you have a lot of money available on a line of credit and you pass, because she is not a borrower on the loan, she may not have to leave but she will not have access to the remaining funds in the line of credit.
  Reply to Michael
CECIL F.
May 15th, 2020

A couple had a reverse mortgage and one dies and the other re-marries, what is the status of the new spouse if the mortgage owner dies?
Reply to CECIL
- Michael Branson
  May 15th, 2020
  
  Hello Cecil,
  
  There are a couple of issues here. Firstly, the owner of the property must determine in accordance with the laws of the state what the status of the property is to be. Some states (Texas being one that immediately comes to mind) have strong heirship laws and you should check with an estate attorney to determine what you should do if your desire is to leave the home to your new spouse to be sure there are no other claims on title.
  
  The second issue is the loan itself. You cannot add new borrowers to an existing loan. You could refinance the loan now in both your names if you want to be sure that your new spouse is also covered under the terms of a reverse mortgage, otherwise the loan will become due and payable when the owner passes and then it will be up to the heirs to either pay off the loan and keep the property, sell the property and pay off the loan with the proceeds or let the lender take the home if they do not want to be bothered.
  But with any of these options (other than if you refinance the loan in both your names with a new loan now) you get back to the paragraph above and you should speak with an estate attorney now so that when/if that time comes, the steps have already been taken so that title, heirs and the lender have already been notified and the transition is smooth and the remaining spouse isn't trying to scramble to get things together during a very difficult time in their lives.
  Reply to Michael
DeRhonda
May 15th, 2020

My husband died and I am a non-borrowing spouse, but the reverse mortgage company said I can live here till I die, but my name not on title. It was the first year Reverse Mortgage came out with a spouse under 62 staying in home but as non-borrowing?
Reply to DeRhonda
- Michael Branson
  May 15th, 2020
  
  Hello DeRhonda,
  
  I would encourage you to be certain you understand the ground rules. Even in the instances where non-borrowing spouses are allowed to stay before the eligible non-borrowing spouse rule changes in 2015 when they were allowed to remain on title, one of the rules was that they had a limited amount of time to get title to the property.
  You may not have been on title at the time, but I am concerned that even if they told you that you could remain in the home, one of the provisions is that you must now get title to the property or they can still call the loan due and payable.
  I do not know who has title to the property at this point but if you have the right to the title of the home since your spouse passed, I would strongly suggest you have the title to the home placed into your name as quickly as you are able.
  Reply to Michael
Meachie
April 13th, 2020

My name is not on the deed, but I was married to my husband when the contract was closed.......he has since passed away and the Lender says I must Buy, Sell or Surrender the property!
Reply to Meachie
- Michael Branson
  April 13th, 2020
  
  Hello Meachie,
  That's not an entirely correct characterization of what needs to happen. The loan is now due and payable if your husband was the only borrower on the loan and you were not included in a loan originated after 2015 as an eligible non-borrowing spouse.
  The lender does not own the property, your spouse's estate does if you were never added to title and if you were, you already own the home. The lender cannot require you to "buy what you already own and if you are the heir, you will inherit the property, you don't have to buy it.
  Now, having said this, the loan is now due and payable. If you do not have the funds available to repay the obligation, that would require you to refinance the loan or possibly sell the property to pay off the loan that is due. If there is no equity remaining in the home and you do not wish to keep it, you always have the option to walk away, let them take it in a foreclosure action and owe the lender nothing but that would be your call.
  We have done a series of articles on what to do once the last borrower leaves the home and I would encourage you to read about your options and the best steps to take.
  Reply to Michael
Niko
March 30th, 2020

In California is a wife responsible for her deceased husband's reverse mortgage which the husband contracted to before the marriage? The husband had also bought the house before the marriage.
Reply to Niko
- Michael Branson
  March 30th, 2020
  
  Hello Niko,
  
  The reverse mortgage is a non-recourse loan. No heir is ever responsible for the loan at any time in any state. If you are your husband's heir, you may want to see if there is any equity in the home and if it makes sense for you to sell the home and keep any equity from the sale but if not, you are not required to do anything and the lender cannot seek repayment from you.
  Reply to Michael
Billy C.
March 16th, 2020

My wife took out a reverse mortgage in 2007. We have been married since 1986, my name was not on the deed since she owned the property before we married however she created a trust giving me a life estate. She is now in a memory care facility with Alzheimer's disease. I still live in the home as my primary residence and maintain all the property requirements. I am 80 and she is 81. What are my options?
Reply to Billy
- Michael Branson
  March 16th, 2020
  
  Hello Billy,
  
  If she is no longer living in the home as her primary residence, the loan will become due and payable as soon as the lender becomes aware of the change. About your options with the property, that depends on how you and your wife set up the estate and what options that now affords to you.
  The loan will need to be repaid and that can be done with other assets available to you, with a refinance (new loan) or by selling the property. I cannot tell you what rights you do or do not have to finance or sell the property, that would all depend on the way everything was handled by your wife.
  I would suggest that you contact an attorney to discuss options and what must be done at this time. There are loans available (even reverse mortgages) in the name of life estates so the sooner you determine your options the better off you will be.
  If you wait until the lender becomes aware of the changes and calls the loan due and payable, it may shorten your available time to act and that is never a good thing if you have to act under the gun.
  Reply to Michael
Geronimo H.
January 16th, 2020

My mom died and had reverse mortgage without my father's consent. We received for closure letter from lender even though legally married.
Reply to Geronimo
- Michael Branson
  January 16th, 2020
  
  Hello Geronimo,
  
  If dad was on title, the only way that could happen is if mom (or mom with someone else's help) defrauded the counseling agency and HUD to get the loan as that is not allowed.
  Even if dad is not on title, mom cannot get the loan on her own if she is married without dad attending the counseling and signing multiple documents. I am not an attorney and cannot advise you legally, but I would strongly suggest that you have dad send his legal documents showing he was on title to the home at the time the loan was originated to an attorney so that the attorney can contact the lender as a representative of the legal owner of the property.
  The attorney will know what else he/she needs to do to stay the foreclosure and what steps can/should be taken at this time in accordance with state laws to protect dad's interest.
  
  I honestly do not know what dad must do at this point. Did mom defraud dad? Did mom and the bank loan officer conspire to do anything? Or did she present the documents to him for signature and he just doesn't remember? I have to believe dad was not on title at the time or he would be on the loan and still able to remain in the home now (unless dad is younger, was not eligible and was removed from title in order to close the loan at that time).
  These are all things the attorney will have to request copies from the lender to determine and then make plans in accordance with whatever the information uncovers and in accordance with the state laws.
  Reply to Michael
Susan P.
November 11th, 2019

I am a non-borrowing spouse eligible to stay (closed Nov. 2014) but I failed to put myself back on title before my husband's death last month. I have durable power of attorney, and his will leaves me the home, etc. HUD now says I can stay provided I have a lifetime lease, or I can prove I am on title. I am panicking.
Reply to Susan
- Michael Branson
  November 11th, 2019
  
  Hello Susan,
  
  Don't panic but contact an estate attorney and he/she can help you with the title. You cannot typically perform a self-serving act with a power of attorney (use it to add yourself to title) and so it will probably take a different sort of action to add you back to title at this time but it can be done.
  It is much easier and I always advise borrowers to execute any ultimate plan for title while everyone is still alive and competent because it is so much easier than having to go through a court later, but even if it takes a probate action now, you should have it completed asap and an estate attorney will know how to best accomplish this task for your circumstances.
  Reply to Michael
Gloria M.
October 27th, 2019

I am a spouse who has a reverse mortgage in NY. My husband bought a house in FL which he owns. He wants to get a reverse mortgage with both of us on it. The NY house is going up for sale soon. Can he still file for a reverse mortgage now with both of us eligible?
Reply to Gloria
- Michael Branson
  October 27th, 2019
  
  Hello Gloria,
  
  You are only eligible for one reverse mortgage at a time. As soon as the home in New York sells or the loan is paid off through any other means, then you can both be on the loan in Florida if you both live in the home as your primary residence.
  If he were to obtain the loan without you because you do not live in the property, then you would not be protected later should something happen to him and you cannot be added to the loan later. If your plan is to sell the New York home anyway, I would suggest waiting until then to get the reverse mortgage so that you can both be on the loan.
  Reply to Michael
Cherie A.
October 15th, 2019

Hello. I recently found out that my new husband has a reverse mortgage on his home that he and his previous wife had. She has since passed away. But her grown children are claiming that they want the house. So, the pooled together and managed to pay the reverse mortgage off. I was unaware of this transaction as his wife. Now since they paid off the mortgage, they want me out of "their" mothers home. How can they do this without my consent or knowledge?
Reply to Cherie
- Michael Branson
  October 15th, 2019
  
  Hello Cherie,
  
  I'm sorry, but I really can't answer this for you. The issue of property rights has nothing to do with the reverse mortgage and everything to do with legal heirship rights. We are forbidden by law and licensing to give legal advice and I honestly would not try to advise people on the laws of each state not being a licensed attorney in that state.
  I would strongly suggest that you contact an attorney practicing in your state to determine your rights regarding the property. A single appointment would probably not be too costly, and you may be able to find one that advertises a first meeting at no or limited cost to let you know if you have any standing. You can also check to see if there are any free legal aid services available in your area.
  Reply to Michael
Khadijah
September 23rd, 2019

Hello ARLO, my husband applied and got a reverse mortgage. Both of our names were on the deed, but due to my age at the time my name had to be taken off the deed for him to get it. Now I'm 63 can I get my name put back on the deed?
Reply to Khadijah
- Michael Branson
  September 23rd, 2019
  
  Hello Khadijah,
  Your husband can grant Deed the property back to both of you at any time, you did not have to wait until you were over 62. But keep in mind, this does not protect you in the instance that anything happens, and your husband is no longer able to live in the home as his primary residence unless you were included as an eligible non-borrowing spouse.
  I do not believe to be the case because if the loan was closed after 2014 and you were an eligible non-borrowing spouse, there would have been no need to remove you from title. If you want to be able to remain in the home for life and you are not an eligible non-borrowing spouse, you would have to refinance the loan now in both your names.
  I do recommend that you change the title to include both spouses as well as have your husband write an authorization letter to the lender authoring them to speak to you on all matters related to the loan on his behalf. If the lender has no authorization, they cannot speak to you regarding the loan should something happen to your husband until they receive the proper legal authorization. I also recommend that you seek assistance from a title company or attorney to be sure your change of title does not trigger any legal or tax issues.
  Reply to Michael
Kathleen V.
July 10th, 2019

Hi, I just learned that my Italian husband (36 years of marriage) took out 4 mortgage loans against the full value our home. He also forged my signature on IRS taxes despite my demand not to. I just find out that if I don't report it to the police, I will be guilty too. I'm gathering the courage to go today and I'm scared. He is abusive and a warrior. Can you please offer me some encouragement and or advice? Thank you, K.V.
Reply to Kathleen
- Michael Branson
  July 10th, 2019
  
  Hello Kathleen,
  
  I am sorry to hear of your circumstances. I really cannot advise in this situation, other than to say that you need others on your side. I would suggest you reach out to legal counsel and possibly to other social services available to you who would advocate on your behalf. An attorney in your area will know your legal rights and remedies as well as what you need to do to protect yourself. I wish you the best.
  Reply to Michael
Kristy R.
June 24th, 2019

My father took out a rm on our parents' home back in 2010. My mother at the time wasn't old enough to be added to the mortgage with him. My dad has since passed, and my mother was never added to the loan because none of us knew until he died. My parents we married, and both were living in the home when my dad passed. My mom did all the paperwork to the probate court within 90 days of his passing. Over a year and a half went by now the reverse mortgage company is saying my mom didn't qualify and now they are in the process of selling the home. My mom has contacted HUD several times and they are saying she qualified for the non-borrowing spouse and don't see a denial letter of why she wouldn't. Now we are stuck in limbo of what to do and the home is set to be auctioned the 2nd week of July. What do you think is the best advice you could give us?? We have also contacted several lawyers but they're saying they can't do anything because there is no money owed.
Reply to Kristy
- Michael Branson
  June 25th, 2019
  
  Hello Kristy,
  
  I hate hearing this story and it is one I hear way too often. Firstly, is mom sure she didn't know? Because the laws and rules are strict that mom had to be involved in the loan process and had to sign a bit of the documentation, even though she was a non-borrowing spouse. If she didn't, the loan was not closed in accordance with HUD rules and probably not the laws at the time.
  Your dad simply could not have done the loan by himself according to HUD rules and most state laws and if he did and mom didn't sign off on her interest in the home and attend counseling, etc. to understand exactly what the risks were, there may be recourse for her. If she did attend the counseling, did sign her interest to dad to complete the loan, she did know, even if she forgot and is now in a mess as a result.
  
  The probate court is just to get the title in her name. Was that completed? Does she now have the property in her name? What has she been doing with the lender when the lender contacted her and informed her that the loan is now due and payable and that they would begin foreclosure if the balance was not repaid? Is there any equity left in the home?
  There are so many questions at this point, but the loan is now due. It there is equity in the home, I would ask the attorneys to see if they can have the foreclosure stopped until mom can sell the home herself if refinancing the loan is out of mom's ability to complete.
  
  I don't know what you mean by no money owed -there is money owed and it is the balance of the loan! It's possible they are referring to payments not made but there are usually legal maneuvers to temporarily stop or delay a foreclosure proceeding and not being an attorney in your state, I can't advise you in that area. The bottom line though is that even if you do get the delay, the loan will have to be repaid now with a refinance or the sale of the property.
  I don't know what HUD told mom and I can't say what the lender has or has not communicated. I would strongly suggest that you have mom sign an authorization for you to communicate with the lender on her behalf about the loan if she has not yet because I am concerned that she says she didn't know until he died that she was not added to the loan when all counseling and forms she signed would have clearly stated this fact (unless something was seriously omitted).
  You need to act quickly. It should have been done the moment you started receiving letters and notices from the lender about the loan now being due and payable or when they first notified you of a foreclosure because now your time is so limited. I wish all borrowers who ever did a non-borrowing spouse reverse mortgage would review their situation immediately, before the borrowing spouse passes and the non-borrowing spouse finds themselves in this situation.
  Reply to Michael
Melissa H.
June 4th, 2019

My husband bought our house in 1986 before we married in 1990. As far as I know, I have never been on title. In 2014, he took out a reverse mortgage listing me as non-borrowing spouse. He died this year intestate. The reverse mortgage amount owed is half the assessed value. I turn 61 this August. Can I sell the home subject to the amount due for the reverse mortgage and get whatever proceeds there are without going thru probate?
Reply to Melissa
- Michael Branson
  June 4th, 2019
  
  Hello Melissa,
  
  I am sorry but I honestly cannot answer this question. This is a legal question and not a question that pertains to the reverse mortgage. The lender has a loan on the property that is now due and payable, but they do not have any ownership interest in the property. That only changes if no one repays the loan and they must foreclose to protect their security interest in the property and then the home would sell at a foreclosure sale and that would not be good for you or any other potential heirs at all.
  The lender can only start the sale with the opening bid at what is owed on the loan and then if no one bids higher, the lender would own the home for the outstanding loan amount. If others do bid, the lender cannot bid against them so the estate would only receive the difference between what is owed on the loan and the final sale price to the highest bidder, which is typically much lower than the actual value at a foreclosure auction. Most people don't go to a foreclosure auction looking to pay top dollar for homes.
  
  I don't know what process you must go through at this time and I don't know what the heirship laws are for the state in which you are located. I also don't know if there are any other heirs who might have a claim on the title and would contest your ownership after so many years nor do I know if there are creditors that must be settled.
  What I do know is that if I were in your shoes, I would not waste any time and I would contact an estate attorney to find out! The attorney can guide you through all the steps required to pass the title and advise you of any potential pitfalls you are likely to encounter (if any). In any event, the lender will be looking to see that you have taken the steps needed to repay the obligation and the first step is to resolve the title issue. I wish you the best.
  Reply to Michael
Janet W.
June 3rd, 2019

Hi Arlo,

If one spouse lives in the house, while the other moves out, is the loan due? Or what if there is a divorce? Thanks for your help.
Reply to Janet
- Michael Branson
  June 3rd, 2019
  
  Hello Janet,
  
  If both spouses were originally on the loan or if one spouse was on the loan and the other was considered an "eligible non-borrowing spouse", then as long as at least one of the two of them is still living in the home, the loan is still in good standing and the lender will not call it due and payable (assuming the occupying spouse continues to also pay the taxes and insurance as well as reasonably maintain the home).
  The loan is still in good standing if at least one original borrower or eligible non-borrowing spouse continues to occupy the home, remains on title and meet the conditions of the loan.
  Reply to Michael
Joan M.
May 24th, 2019

My husband is only name on deed to home. He 73 & I'm 70. He wants to change from house being left to me to give me lifetime estate & after my death house goes to his son. If we need financial help after this drawn up, can he get a reverse mortgage & me remain n house after his death.
Reply to Joan
- Michael Branson
  May 24th, 2019
  
  Hello Joan,
  
  You really have two questions here and I can only answer one.
  If your spouse does a reverse mortgage on the home in which you are living at the time you are married, even if you are not on title and not on the loan, you would be considered an "eligible non-borrowing spouse" which means that under the terms of the loan, you could stay in the property for life under the terms of the loan (you have to make sure that the taxes and insurance are paid when due, you maintain the property in a reasonable manner, pay all other property charges and continue to live in the property as your primary residence).
  You are not a borrower on the loan though so you would not have access to any remaining loan proceeds once your spouse is no longer living in the property so although you could stay in the home for life without having to make payments on the loan, you just could not draw additional loan proceeds.
  
  As for the life estate, you and your spouse would have to contact an attorney to determine how best to handle the title to ensure that you do not violate the HUD requirements.
  A life estate is allowed for reverse mortgages, but I would strongly suggest that you contact your lender and gain prior approval on the way the title is to be transferred so that you do not inadvertently trigger a due on sale by not maintaining proper title requirements of the loan at that time.
  I would remind you that this is much easier to do before anyone passes and before an irrevocable mistake has been make which would displace you from the home.
  Reply to Michael
David V.
May 13th, 2019

I my wife is on title to our property solely. I'll be 62 yrs. old before she will be. Can I get reverse once I turn 62 and should I be granted on title before I get the loan?
Reply to David
- Michael Branson
  May 13th, 2019
  
  Hello David,
  
  I do not know the circumstances as to why the title is as it is, but your wife can grant title to both of you to do the reverse mortgage when you turn 62 or any time before. If she is not yet 62 when you do the loan though, she would be an "eligible non-borrowing spouse". This gives her all the same rights to stay in the home for life even if something happens to you but she is not a borrower on the loan so she would never have access to loan proceeds if you should pass if there was still money left available on the line.
  
  This is an important distinction. The eligible non-borrowing spouse must follow all the same rules as the borrower. They must live in the home as their primary residence, pay all taxes and insurance when due and maintain the home in a reasonable manner. BUT if there was a large amount of money left in the line of credit when something suddenly happened to the borrowing spouse, the non-borrowing spouse cannot access those funds.
  If you use all your proceeds right from the start just to pay off an existing loan, this provision has no impact because there are no additional funds to worry about. However, let's say you had a $100,000 line of credit that you had not yet used and were saving that for future expenses when you suddenly passed. Your wife could remain in the home and would not have to make payments on the loan, but she also would not have access to the remaining $100,000. This is something you should consider carefully before you proceed.
  Reply to Michael
Paul MacDonald
May 11th, 2019

I'm 66 and my wife is 62. Only my name is on the title but we were married at the time the home was purchased. Can we both be borrowers on a RM with my wife not on the title? (and then after the RM closing I will have her name put on the title)
Reply to Paul
- Michael Branson
  May 14th, 2019
  
  Hello Paul,
  
  You do not have to wait, you can add her to title now (or just before closing, it makes no difference) and you would both be on the loan and covered by the loan's protections as well. That way, if anything happened to you, she could also access any remaining funds on the loan as well as stay in the home for her life without having to make monthly mortgage payments.
  Reply to Michael
Valerie R.
May 10th, 2019

I just found out that I'm an ineligible non borrowing spouse because I wasn't married to my late husband when the loan was closed. Am I still an ineligible non borrowing spouse if my name is on the deed of the house?
Reply to Valerie
- Michael Branson
  May 10th, 2019
  
  Hello Valerie,
  
  Reverse mortgage borrowers can add anyone to title at any time if they are still on title as well and it does not affect their loan. Adding you to title though does not keep the loan from becoming due and payable when the borrower is no longer living in the home as their primary residence. You do own the home and you can refinance the loan with a new loan and even with a new reverse mortgage if you now qualify, but that loan is now due and payable.
  If the balance is such that a refinance is not possible, you may also consider a sale, downsizing and using a reverse mortgage purchase on the new property. But whatever you choose, I would strongly urge you to investigate all your options now, before the lender contacts you and the timing is no longer yours to determine.
  Reply to Michael
Bonnie H.
April 11th, 2019

My husband and I have a RM since 2006. At that time, I was not 62 yet so I took my name off the house title to get the loan, I am not on the loan. We were legally married at the time of loan and still married. My husband has passed recently. RM offered me a non-borrowing spouse, so I signed the papers. RM people said I should not have a problem. That all the paper work will be sent to HUD, If the program is still in effect. It has been 6 months. Is the program still in affect and would I be eligible to stay in the house under the same conditions as before, I just don't get any of the loan money?
Reply to Bonnie
- Michael Branson
  April 11th, 2019
  
  Hello Bonnie,
  
  I'm not sure I follow what you are telling me. Are you saying that the current reverse mortgage servicer has offered you a new loan at this time on which you will be a non-borrowing spouse? That does not make sense. You can get a new loan in your name at this time if you qualify under the current program parameters, but that would be as the borrower, not a spouse (you no longer have a spouse and the loan is in your name at this point).
  You would have to have the title in your name as well so if you and your husband did not add you back to title, you would need to take care of that before you can close your loan. There is a very real possibility that the home would have to go through probate if you were not on title at the time your husband passed and so I would encourage you to see an estate attorney to determine what needs to be done to ensure the title is perfected in your name as soon as possible.
  Reply to Michael

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