Fresno Reverse Mortgage Question - What happens if I outlive a reverse mortgage?

By
Mortgage and Lending with Visalia and surrounding communities NMLS ID# 582935

 

What happens if I outlive a reverse mortgage?

As long as the home is your principal residence, you maintain the home, pay the property taxes, insurance and homeowner dues, then the loan just stays in place with you as the homeowner.  

Umbrella on the beachWhat you are probably referring to is, if, over time you withdraw all the available funds from the reverse “Line of Credit”  Then what happens?  Again, nothing - you still are the owner of the home with the only obligations referenced in the first paragraph to live, maintain, and pay tax &; insurance on the property.  You never have to make any payments on the reverse mortgage, unless you want to. If you did make payments you would find yourself re-establishing a line of credit for future use.  (Might be something to consider?)  


Or perhaps you elected the “Term Payment” option that provided a monthly payment for a specific period of time, and now that time period is up.   Then what happens?  Same as above - once all term payments have been disbursed to you by the lender, you have taken all available funds.  No more payments would be made - but as long as you fulfill your obligations on the loan by living in the home, maintaining it and paying the tax and insurance expenses, the loan just stays in place and you are the homeowner.

“Tenure Payments” on a reverse mortgage continue for as long as you live in the home, no matter how long you live.  If you’ve got a family history of long life, this might be a great option for you!

 

Posted by

Jeri Carmicheal, Reverse Mortgage Consultant, Serving Fresno, Madera, Visalia and surrounding communities.

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Rainer
4,940
Hector Campos* Lake County Realtor*
Century 21 Market Place Ltd - Mundelein, IL

Jeri,

 

I like your info I have a client asking me about a reverse mortgage and how this all works.

You mind if I share your answer and print it out for them?

April 03, 2011 09:15 PM #1
Rainer
15,909
Jeri Carmicheal
Visalia and surrounding communities - Fresno, CA
Fresno Reverse Mortgage, Consultant, for Fresno, M

By all means, please do!  You might want to check out HUD's FAQ page about Reverse too. 

April 03, 2011 09:30 PM #2
Rainer
4,940
Hector Campos* Lake County Realtor*
Century 21 Market Place Ltd - Mundelein, IL

Will do thanks!

April 04, 2011 08:27 PM #3
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Rainer
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Jeri Carmicheal

Fresno Reverse Mortgage, Consultant, for Fresno, M
Do I qualify for a reverse mortgage in Fresno, CA
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