Repayment is always a concern when it comes to any kind of
loan. When is it due and who will pay it back? These are a few of the most
common questions asked and they also apply to reverse mortgage loans. It’s
best to take a first look at when a reverse mortgage need to be repaid if you
wish to know the answer as to who needs to repay the loan. The time when the
loan will be due would depend on different factors. They also determine the
method of repayment and who’s responsible for repaying it.
When Is A Reverse Mortgage Due?
You don’t need to repay reverse mortgage loans until is
due, though you need to deal with the homeowners insurance, property taxes, as
well as the home maintenance costs. Provided that you follow these financial
obligations, the loan won’t come due until you move out or sell the house, or
upon your death. If the loan comes due under one of these situations, the one responsible
for paying back the loan are as follows.
If You Move Out or Sell Your Home
Among the eligibility needs of the reverse mortgage loan is
that your house should be your main residence. If your house is not your
primary residence any more, meaning you live in the house for six months at
most then your loan will become due. When this happens, you will be responsible
for paying the loan back. Generally, the proceeds of the home sale can be used
to pay the loan back. Any remaining amount from the sale will be yours to keep.
Keep in mind that you pay only what you borrowed along with the interest that
may have accrued as time goes by.
If You Die
A lot of people are concerned that their heirs would be left
to pay back the loan after they die. Heirs will have a few options. If they
want to keep the house, they could use the proceeds from the home sale to pay
off the reverse mortgage in Greenville. Any remaining amount will be theirs to keep. They
also have the option to sign the deed over to the lender and walk away from the
house without any responsibility to sell the home or pay back the loan.
A Non-Recourse Loan
A reverse mortgage that is insured by the government is
referred to as a non-recourse loan. This means, when the house sells for less
that what’s owned on the loan, FHA insurance could cover the difference and not
you or your heirs.
Call Reverse Mortgage Specialist now if you want to know more about reverse mortgages.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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