How Do I Repay a Reverse Mortgage Loan and What Do I Get to Keep?

As pertaining to reverse mortgages, the method by which a homeowner makes his or her repayments is decided by under what conditions the loan ends. There are two primary conditions that will determine when the loan will be repaid. One of these conditions is the death of the last surviving borrower before the loan is paid off. This loan must still be paid off prior to transferring any titles or homeowner deeds to the rightful heirs of this property. The second condition is that perhaps you have decided to move or sell your home for one reason or another. The decision as to how this loan should be repaid is now the responsibility of the heirs of the deceased or the executor or executrix of the will. Some methods as to how they may choose to repay the balance of the outstanding loan are as follows: The heirs may choose to repay the outstanding loan by almost any legal means at their disposal. This is to say that they may use any of their own funds or monies that they choose. They may decide to take out another regular "forward" mortgage against the home. They may simply decide to sell the home outright and repay the outstanding loan balance with funds from the sale of the house. They may also decide to repay the loan balance with any remaining funds that are available from the estate. What happens when the reverse mortgage loan borrower decides for one reason or another not to remain in their home for the rest of their life? Perhaps they simply decided to move to another place. Or, perhaps one of them has an illness that prevents them from remaining there. These are all serious questions that you should look at when considering a reverse mortgage. Where does it all end? What will be the final outcome? It only stands to reason that not all people who have a reverse mortgage will still be in their home until the loan is repaid. Perhaps they did believe that they would be living in their home until their death or until the loan was repaid but due to unforeseen circumstances they were forced to move. This is precisely why you must plan ahead. You should try to know exactly what you will do if you decide to move or sell your home sometime in the future.