Do I own my property if I take out a reverse mortgage? Will my children own my house when I have a reverse mortgage? What if I don’t want to sell?
When you have a reverse mortgage on your home you retain full ownership of the home as long as you reside there full time. As the home owner you will be responsible for all the upkeep and maintenance on the home. The only way that the lender will assume ownership of the home is if you break the contract or if you no longer reside in the home full time. When you die the lender will assume the house as a security for the debt that is owed. At that time your heirs can repurchase the home. If the estate does not repurchase the home the house will be placed up for sale to cover the debt.
Will my children own my house when I have a reverse mortgage?
A reverse mortgage lender will take ownership of the property upon your death or at such a time that you no longer live in the house. Your estate, at that time, will have the option to buy the home from the lender. They have, on average, 6 months from the time the lender assumes ownership to repurchase the home and pay off the debt. If the debt is not repaid in the time allotted, the house will be placed on the market for sale to cover any monies owed at that time.
What if I don’t want to sell my home?
Any person who has a reverse mortgage can, at any time, pay off the debt prior to their death. If the debt is repaid in full there is no requirement to sell the home. The home is only sold if the debt has not been repaid. Your home is used as a security against the money that is lent to you. If the money is repaid, there is no longer a lien and no reason to sell the home.
Related posts:
- Should My Family Leave Our Property With A Reverse Mortgage?
- If I Have A Reverse Mortgage, Do I Still Take Care Of My Property?
- What Are HUD Minimum Property Standards For A Reverse Mortgage?
- Do I Have To Sell My Property In Order To Satisfy My Reverse Mortgage?
- Can I Sell My Home Later If I Get A FHA Reverse Mortgage?