Can the bank kick me out of my home if I get a Reverse Mortgage?
Question: I recently turned 62 and am interested in a Reverse Mortgage. I've heard that once the bank pays me the full amount of the Reverse Mortgage they take my home and I have to move out. My home is full of years of memories and I couldn't handle having to leave before I'm ready! Is it true, can the bank kick me out of my home once the full amount of the Reverse Mortgage has been paid to me?
Answer: Thank you so much for emailing me this question. It's a rumor, and it's not true. With a Reverse Mortgage, the bank does not have the right to kick you out of your home.
Like any mortgage, either a regular mortgage or a Reverse Mortgage, the bank has a lien on your home, but you remain the owner of your home and can live there as long as you like. You must continue to pay homeowner's insurance and property taxes, and keep the home in good repair.
The only time the bank can take possession of your home is if you move from your home, or you pass away. When one of those scenarios happen, you can sell your home (to anyone - including a family member) and the remaining balance on the Reverse Mortgage is paid off, or, the bank can take the home because of the lien.
Either of these scenarios would take place only if you chose to move from the home or have passed away. I want to reiterate that the bank cannot take your home because you've received the full amount in payments from the Reverse Mortgage. The bank does not have the right to kick you out of your home!
I'll be happy to answer any further questions. My email is email@example.com, and my office number is 541-868-1050, and my cell number is 541-521-7192.