The eighth benefit on my list is - Non Recourse - this eans that you can never owe more than the value of the home.
This is a fantastic benefeit that many people are not aware of. What this means is that if the borrowers live in the home for much longer than expected OR if the value of the property drops significantly before the loan is paid off; the lender can ONLY get what the property is worth.
This is not the case for every other regular "forward" mortgage; If the value drops, they will demand payment for it, even if the home is worth less. This is happening a lot today.
Often, the children of the borrowers are concerned that they will be left with a bill after their parents who took a Reverse Mortgage pass away. This is not the case. No one gets a bill, these are non-recourse loans. The lender can only collect the value of the property, not a penny more. The borrowers and their heirs are not liable for anything.
This is just one more benefit that is unique to Reverse Mortgages that make them such an unbelievably powerful tool to help any homeowner 62 or over who has a financial need.
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