Yes, your name remains on title, like any other traditional mortgage. The lender is simply registered as having an interest like your conventional mortgage loan.

What is the new reverse mortgage?

Reverse mortgages allow homeowners to tap into one of their largest financial assets (their home) and to forgo the monthly payments associated with a typical mortgage.

Can borrowers lose their home with a reverse mortgage?

Reverse mortgage borrowers are responsible for keeping their homes up to FHA standards. This means that if the home falls into disrepair, this can trigger a foreclosure action and force you, as the borrower, to leave the home.

What happens to home with reverse mortgage when owner dies?

When a reverse mortgage borrower dies, a lender will typically explain options for paying off the loan to the borrower’s estate. Heirs then have 30 days to decide what to do. If heirs decide to pay off the HECM, they have six months to sell the property or pay off the HECM, possibly with a new mortgage.

Why is a reverse mortgage called a reverse loan?

It is called a “reverse” mortgage because, rather than make payments each month toward the balance of the loan as a traditional mortgage borrower would, the lender makes payments to the borrower. There are two types of reverse mortgages.

When does a reverse mortgage become due and payable?

Reverse mortgages become due and payable upon the death of the last remaining borrower or when the last borrower permanently leaves the home. Heirs and others are not entitled to continue to live in the home after the borrowers are gone under the terms of the loan.

Can a reverse mortgage be sold to a family member?

There are no restrictions on sales to family members or otherwise, just in the case of a balance of the reverse mortgage being higher than the value of the property and heirs wanting the lender to forgive the over value portion of the loan and still keep the property within the family.

When to contact the reverse mortgage serviser?

If you inherit a home that had a reverse mortgage loan you want to get in contact the loan serviser within 30 days of the borrower’s passing.