What about repaying a Reverse Mortgage Loan?

The very nature of a reverse mortgage loan can be confusing. With a reverse mortgage loan, lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage loan.

A reverse mortgage loan comes due when under the following conditions:

  • Death of the homeowner or last surviving eligible non-borrowing spouse
  • Upon sale of the home by the homeowner
  • If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
  • Upon an instance of default.

When the reverse mortgage loan becomes due there are two options for paying it off.

  1. Proceeds from the sale of the home
  2. The homeowner or heirs of the homeowner can refinance the loan

Like all loans a reverse mortgage loan does carry conditions in order to remain valid. Reasons a borrower may find themselves in default include:

  • Failure to pay property taxes
  • Failure to keep the home in good repair
  • Failure to insure the home
  • Taking of new debt on the home
  • Bankruptcy
  • Abandonment or donation of the home
  • Eminent domain

To apply for your reverse mortgage loan click here.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Frontline Financial, LLC

2180 S 1300 E, Suite 590
Salt Lake City, Utah 84106

Phone: 801-532-2553

Fax: 801-532-1495

NMLS: 132166

FrontLine Financial

Licensed by the Virginia State Corporation Commission MC-2577

Verify Frontline Financial LLC (NMLS# 132166 CA, FL, UT, VA) with the Nationwide Mortgage Licensing System & Registry Consumer Access.

*total finance charges may be higher over the life of the loan