Can the bank kick me out of my home if I get a Reverse Mortgage?

Mortgage and Lending with Academy Mortgage.......We are a Equal Housing Lender CO NMLS2421 : NMLS 264534

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, and my office number is 541-868-1050, and my cell number is 541-521-7192.


Posted by



Ellen Adams with Academy Mortgage 


    Phone: 541-521-7192

    Cell: 541-521-7192



    NMLS: 264534 

    Stay In Touch: follow me on twitter Go to my WP website Go to my Facebook Page



Comments (7)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a great explanation and clarification.  I am sure you have put some minds at ease.

Feb 05, 2011 12:49 PM
Art Hademan
Century 21 Real Estate Center - Mount Vernon, WA

Thanks for this Ellen.

I want to repost this to my Localism blog with your permission.

Lots of seniors need this reassurance because reverse mortgages have changed and there is more protection now for them today then there has been in the past..

Timely and informative!


Feb 05, 2011 12:50 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

I'm not sure the point here, however...a bank will not afford an owner a reverse mortgage unless they own or have enough equity and the house appraises  - right?  In this market, I'm not sure why any bank would even consider this...What am I missing? Seriously - not being sarcastic or anything...can you explain a little further, thanks.  Why would they even think about kicking them out - as I read, they can't but who ask the question...I'm confused.

Feb 05, 2011 12:52 PM
Suzanne Taylor
Ultima Real Estate - Corpus Christi - Corpus Christi, TX
Home Sales In Corpus Christi, TX

Ellen, good post and good information.  I have not dealt with a reverse mortgage, but appreciate the information so I can be of some use if I am asked.

Feb 05, 2011 01:09 PM
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon

Joan: yes,  many seniors have had the peace of mind of knowing they get to keep their home.  1 was a situation, when the wife passed away & the widower lost her SS income, could not make the car payment or small house paymt.  we put him into a RM & paid his car off and he gets a monthly check every month. 

Art: yes you may repost this.   The more I can dismiss the " Myth"   of the bank taking your home the more we can help people. 

Karen: Thank you for being so honest to just "ASK"  .  There is a terrible Myth out there with Seniors that if I get a RM, then the bank owns my home ....and the Deed is not in my name & my kids dont' get any equity that i want to bless them with.   This is simply not true.   on a RM the deed is in the Seniors name, The bank won't even consider a RM unless there is a suffcient amount of equity, and it is based off the youngest persons age.  Usually there is ALWAYS equity.  I also think anyone 62 yrs and older should talk to a person who does RM's even if they are purchasing.  I just helped a single lady 64, buy a brand new home & no payments for the rest of her life span as long as she lives in the home &  after her down payment it still left her with $30,000.  in the bank for emergencies. She draws SS & a samll pension and lives very comfortable with no mortage payment.  WOW!

Suzanne:   purchase or a refinance.  sometimes Seniors think they have to sell their home, but there are other options.  We are all here to do the best for our clients.

Feb 05, 2011 01:59 PM
Retired from ActiveRain
Baker, OR

Ellen, I'm gong to suggest that this post be featured.  The questions is a good one and you answer it clearly and concisely.

Feb 06, 2011 02:06 AM
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon

Thanks Rick: 



Feb 07, 2011 03:48 PM