If you're considering whether or not a reverse mortgage is right for you, you probably have a lot of questions. One particularly important topic weighing on your mind could be the settlement of your mortgage. When will your mortgage become due? Will you still own your home?
The first thing you should know is that your mortgage will never become due as long as you are alive and living in your home. If you are married and you and your spouse are both borrowers on the mortgage, both borrowers must be out of the home before any settlement of the reverse mortgage is necessary. So, rest assured that you will always have a home.
Borrowers who are worried that they might need to spend some time in a care facility needn't worry that their home will be taken away while they are receiving care. If you have to leave the home for a few months while you recuperate from an illness or surgery, your home will still be waiting for you when you return. The reverse mortgage definition of no longer being in the home requires that you be out of the house for more than six of the last twelve months.
Once you have passed away and your reverse mortgage comes due, don't be concerned that your heirs will become saddled with your debt. Your heirs can sell your home and use the proceeds from the sale to pay off the outstanding mortgage. And, if the house sells for more than is needed to pay off the mortgage, your heirs will even be able to enjoy the excess funds. How's that for an inheritance?
You may wonder what happens if the home's sale doesn't provide enough money to pay the mortgage off in full. Will your heirs become responsible for the remaining balance? No, they won't. Because reverse mortgages are a type of non-recourse loan, the lender will not be able to collect from your heirs. The lender will simply have to accept the sale proceeds as payment in full.
As you can see, reverse mortgages allow you to enjoy your home forever with little to no consequence to you and your heirs. Your home will be there for you as long as you need it. In addition, there are no real financial ramifications to your heirs after you are gone. A loan with these features makes it easy to see why you should consider how a reverse mortgage will fit into your life.
For additional info and how you can apply a reverse mortgage to your situation if you're over the age of 62, call or email us at GCCPropertySolutions@yahoo.com . Right now we have many homes in Wayne, Macomb and Oakland counties that are HUD qualifed for reverse mortgages. Eliminate your house payment, eliminate paying any rent and see how a reverse mortgage can benefit you if you're over the age of 62. Contact us at GCCPropertySolutions@yahoo.com of call Glenn at 517.930.1919 for more info.
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