Reverse mortgage loans are often required to be repaid when the borrower dies.
What happens to the reverse mortgage will be determined by a number of factors, including:
Whether you have a reverse mortgage loan co-borrower,
When you obtained the Reverse mortgage lenders san diego,
Whether you were married at the time the loan contracts were executed and remained married until your death.
If the loan has a co-borrower,
When there is a co-borrower on the loan, both you and the co-borrower benefit from the loan and are liable for meeting the loan's requirements. If one borrower dies, the co-borrower can continue in the home and receive loan payments as long as they maintain the reverse mortgage loan's conditions.
Check with your reverse mortgage servicer to ensure that your loan records are correct and that you and your co-borrower are both on the loan. Call your loan servicer to find out which names are on your loan. Look for the servicer's phone number or address on your reverse mortgage loan statement and request that they send you this information in writing for your keeping.
If neither you nor your spouse is a co-borrower,
Your non-borrowing spouse may remain in the home if the debt is paid off. They may also be eligible to remain in the property without repaying the loan, depending on when the loan was originated (when it was taken out) and whether they qualify as an Eligible Non-Borrowing Spouse under HUD's regulations. The reverse mortgage will not provide any funds to an Eligible Non-Borrowing Spouse. It may be difficult to qualify as an Eligible Non-Borrowing Spouse. Your non-borrowing spouse may want to get help from an attorney or a HUD-approved housing counseling agency.
For reverse mortgage loans granted a case number on or after August 4, 2014
If you, the borrower, die or move into a healthcare facility for more than 12 consecutive months (referred to as a "deferral period"), your lender or servicer will assess whether your non-borrowing spouse is eligible to continue in the property. To be an Eligible Non-Borrowing Spouse, your spouse must meet the following requirements:
Have been married to you at the time the loan paperwork were executed, and will remain so until your death. If you and your spouse were a same-sex couple who were unable to legally marry at the time the reverse mortgage loan was issued, your spouse must demonstrate that you were legally married at the time of your death.
Have been designated as a non-borrowing spouse in the loan documentation.
Have resided in the home as their primary residence for more than 12 straight months after you die or relocate into a healthcare facility.
Continue to meet the loan criteria and keep the debt from becoming due and payable for any other reason.
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