What about repaying Reverse Mortgage?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage.

A reverse mortgage comes due when under the following conditions:

  • Death of the homeowner
  • Upon sale of the home by the homeowner
  • If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
  • Upon one of the instances of default listed below.

When the reverse mortgage becomes due there are two options for paying it off.

  1. Proceeds from the sale of the home
  2. The heirs of the homeowner can refinance the loan

Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of reasons for which a borrower would find themselves in default.

  • Failure to pay property taxes
  • Failure to keep the home in good repair
  • Failure to insure the home
  • Taking of new debt on the home
  • Bankruptcy
  • Abandonment or donation of the home
  • Eminent domain

To apply for your reverse mortgage click here.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Homebridge Financial Services, Inc. NMLS: 6521

Rey Gallegos

7220 S Cimarron Road, Suite 100
Las Vegas, Nevada 89113
Phone: 702-808-8328
Branch Phone: 702-763-5828
Branch NMLS: 1180531

Find Us:

© 2016 Homebridge Financial Services (NMLS ID #6521) at 194 Wood Avenue South, 9th Floor Iselin, NJ 08830. All rights reserved. For all licenses, visit http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/6521
 

In accordance with Section 326 of the USA PATRIOT Act of 2001, Homebridge Financial Services, Inc. is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act. 
Homebridge Financial Services, Inc. is not responsible for the third party’s privacy policies and/or content.