Can the lender take my home if I outlive my reverse mortgage? Can I be forced from my home during a reverse mortgage? Are reverse mortgages safe?
If you outlive your reverse mortgage you will not be forced from your home unless you have specifically signed a contract to do so. Since this is highly unlikely, and possibly illegal, you do not have to worry about this issue. However, there may be a stipulation that you will need to start repayment on the reverse mortgage at this time. Again, this depends on the contract that you initially sign. Make sure you understand everything clearly before you sign the contract.
Can I be forced from my home during a reverse mortgage?
There are a few contingencies that may cause you to loose the rights to your home during a reverse mortgage. If you no longer use the home as a permanent residence you forfeit your right to ownership. This includes going into a nursing home for a period extending for over a year. If you fail to keep up the major maintenance of the home or property you are in violation of the reverse mortgage. If you fall behind in property taxes or in some cases income taxes, you may be forced to sell. Most reverse mortgages also have a clause about maintaining property insurance on the home during the course of the loan. If you keep current on these issues you will not be forced from your home.
Are reverse mortgages safe?
If you get a reverse mortgage through a reputable mortgage broker you are safe. You must be aware of everything within your mortgage contract and comply with all its rules. If you follow the program accurately you will not have any problems. The best rule is to go over the contract thoroughly before making the commitment.
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