What Are My Responsibilities If I Get A Reverse Mortgage?

What are my responsibilities if I get a reverse mortgage? Are my children responsible for my reverse mortgage? What if I can’t keep up maintenance?

When you receive a reverse mortgage there are a few things that you must do in order to ensure that you stay in the reverse mortgage program. You must keep all your taxes current. This includes any taxes at local, state or federal levels. You must keep your home properly insured during the course of the reverse mortgage. Lapse of home owners insurance can cause your reverse mortgage to be canceled. You must live in the home as your main residence. Extended periods at away from the home may disqualify you. You must maintain proper maintenance on the interior and exterior of the home throughout the course of the reverse mortgage.

Are my children responsible for my reverse mortgage?

When you pass away your heirs will have the option to repurchase the home from the bank/mortgage holder. If they do not repurchase the home it will be placed up for sale and any additional money from that sale will go into the estate. If you do not have a federally insured reverse mortgage your heirs may be responsible for any shortcomings of the sale. It is very important to know what type of reverse mortgage you have so your heirs will understand their obligations.

What if I can’t keep up maintenance on the home or property with a reverse mortgage?

If your property or home falls into bad disrepair during the time you have a reverse mortgage you may loose your home. Reverse mortgage contracts have a clause that specifically states maintenance must be up kept on the home. Failure to keep proper maintenance will be seen as a breech in contract and the lender has the right to recall the loan and force the sale of the house to regain their money.

Related posts:

1. What are my responsibilities if I take our a Reverse Mortgage?
2. What Responsibilities Do I Have If I Take Out A Reverse Mortgage?
3. What Financial Responsibilities Am I Liable For With A Reverse Mortgage?
4. Do I Own My Property If I Take Out A Reverse Mortgage?
5. Can Children Be Liable For A Reverse Mortgage Of Deceased Parents?

This entry was posted on Thursday, February 25th, 2010 at 1:33 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.