Can my family owe on my reverse mortgage when I die? Will my estate pay for my reverse mortgage? Can my children inherit my home with a reverse mortgage?
When you have a reverse mortgage you are living off of the equity in your home. At the time of your death the mortgage lender will take possession of the home and sell it to recover the money that is owed upon the house. If at that time there is an outstanding amount still do the lender will attach that debt to your estate unless you have a federally insured reverse mortgage.
Will my estate pay for my reverse mortgage?
If there is a balance left on the amount due from your reverse mortgage your estate will be responsible for that amount. If you have a federally insured reverse mortgage the insurance policy will cover the amount that is remaining. All reverse mortgages are not federally guaranteed. To have an insured reverse mortgage you would have had to receive the mortgage from a FHA backed lender.
Can my children inherit my home with a reverse mortgage on it?
Heirs to the estate are given the opportunity to repurchase the home from the lender at the time of your death. There is a window of opportunity of approximately 6 months for the estate to pay the debt prior to the lender selling the home. If there are and proceeds from the sale that are over the amount due the money will transfer back to the estate. In the event that the sale of the home was not enough to cover the loan and the mortgage was not insured, the balance of the loan will revert to the estate for payment. The only way for an heir to inherit a home with a reverse mortgage on it is to pay the lender in ful
Related posts: