Do I Still Continue To Own My Home If I Take Out A Reverse Mortgage?

Reverse mortgage lenders send monthly checks without an ownership interest in your home. Find out how to cut payments and receive additional payments every month.

Reverse mortgages are similar to conventional options, but are not entirely the same. Ownership however remains in the hands of the homeowner. Lenders file liens, typically in the form of a deed of trust, naming the lender as the beneficiary in the event of default. Default rarely occurs because no payments are required. The lien secures the loan until repaid as with conventional secured loans.

Home Title

When you buy a home, the deed specifies the type of ownership you receive. Routinely, the seller agrees in the deed to warrant and forever defend your ownership and conveys all interest in the property. A deed of trust is different. It does not convey title unless very specific conditions occur in the future. In a reverse mortgage, the lender does not obtain title to property unless the borrower defaults, and then follows stringent foreclosure procedures precisely.

How Much Can You Get?

Homeowners are not required to make monthly payments on a reverse mortgage. Quite the opposite, homeowners receive monthly payments from the lender by drawing on a line of credit. These payments are available up to the maximum amount of credit approved by each lender. Home equity determines the maximum amount available to each person. If you are curious about your options, apply today to discover your maximum credit limit.

Repaying a Reverse Mortgage

When the last spouse vacates the home, the loan becomes due. When this happens, repayment is limited to the actual value of the home or the loan balance, which ever is less. Your heirs could surrender your home in complete satisfaction of the loan, or alternatively, keep your home and repay the loan balance.

Related posts:

1. Can Title To A Reverse Mortgaged Home Be Placed In A Living Trust?
2. Can I Do A Reverse Mortgage If My Home Is In A Trust?
3. Can Title To A Reverse Mortgage Home Be Placed In A Living Trust?
4. Is A Home In A Living Trust Be Eligible For A Reverse Mortgage?
5. How Do HECM And Home Keeper Reverse Mortgages Differ?

This entry was posted on Monday, November 16th, 2009 at 6:17 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.