Do my Heirs have to repay
the Reverse Mortgage loan?
This is a popular question regarding reverse mortgage among borrowers and potential borrowers. Many worry about what will happen to their
family and would prefer not to be a financial burden to their families after
they pass away. However, your heirs have three options on how they are able to
satisfy the loan.
1. The heirs can refinance the reverse mortgage loan and pay
back the loan based on the terms. With this option, they are able to keep the
home.
2. The heirs can sell the property to pay off the balance of the
loan. They have up to 12 months to work with the bank to sell the property. If
there is any remaining money after paying off the balance, the heirs receive
the remaining proceeds.
3. Yours heirs can return the house to bank and walk away from
it. Because the house is collateral for the reverse mortgage loan, this will
satisfy the loan.
These options are available for your heirs to work with and one
choice is not better than the others. Whatever they decide, they should
ensure they fully understand the three different ways that they are able to
satisfy the loan.
George Lagarde
ReverseMortgageLV.com
GLagarde@AllWestern.com
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