Reverse mortgage debts are typically due upon death.
The outcome of the reverse mortgage will depend on a number of variables, including:
Whether or not you have a cosigner on your reverse mortgage loan?
When the best mortgage companies to work for in california was obtained, and
Whether you were married at the time the loan documents were executed and remained so until your mortality.
If there is a co-borrower on the loan, the interest rate will be higher.
When there is a co-borrower on the loan, both you and the co-borrower are entitled to the loan's benefits and are responsible for fulfilling the loan's obligations. If one borrower passes away, the co-borrower will be able to remain in the home and continue receiving loan payments as long as they satisfy the reverse mortgage loan's obligations.
Check with your reverse mortgage servicer to ensure that your loan records are accurate and that both you and your co-borrower are on the loan. Call your servicer to learn which names appear on your loan. Find 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 records.
If your spouse is not a co-borrower on the loan:
Your non-borrowing spouse may remain in the residence if they repay the mortgage. They may also be able to remain in the property without paying off the mortgage, depending on when the loan was originated (i.e., taken out) and whether they qualify as an Eligible Non-Borrowing Spouse under HUD's regulations. A Non-Borrowing Eligible Spouse will not receive any funds from the reverse mortgage. The process for becoming an Eligible Non-Borrowing Spouse may be challenging. Your non-borrowing spouse may wish to seek assistance from a lawyer or HUD-approved housing counseling agency.
For reverse mortgage loans assigned a case number after August 4, 2014
Your lender or servicer will determine if your non-borrowing spouse is eligible to remain in the home if you, the borrower, pass away or enter a healthcare facility for more than 12 consecutive months (this is known as a “deferral period”). For your spouse to qualify as an Eligible Non-Borrowing Spouse, he or she must:
Be married to you at the time the loan documents were signed and remain married until your demise. If you and your spouse were same-sex and unable to be legally married at the time of the reverse mortgage loan, your spouse must demonstrate that you were legally married at the time of your demise.
Have been designated as a non-borrowing spouse in the loan documents.
Have lived and continue to live in the home as their primary residence for more than 12 months after your death or admission to a healthcare facility.
Continue to comply with the loan's terms and ensure that it does not become due for any other reason.