Can You Just Walk Away From A Reverse Mortgage?
Allow foreclosure: Heirs are not held responsible for a reverse mortgage loan and can walk away from the property without owing anything. As mentioned earlier, if the home is worth less than the loan amount, that is the lender's responsibility and why a borrower pays into a federal insurance fund.
Do you have to live in a house with a reverse mortgage?
You must live in your home as your primary residence for the life of the reverse mortgage. Vacation homes or rental properties are not eligible. You must own your home outright or have at least 50% equity in your home to be eligible for a reverse mortgage loan.
Eligibility Requirements for Reverse Mortgage | RMF
How long do you have to sell a house with a reverse mortgage?
However, depending on the lender and the terms of the loan, you'll likely have up to six months to repay the reverse mortgage loan. “The estate has six months to sell the property, with two optional three-month extensions,” explains Kennedy.
4 Simple Steps to Selling a House With a Reverse Mortgage
What happens if you walk away from your reverse mortgage?
If a borrower has a HECM reverse mortgage, then the lender cannot pursue the borrower for any deficiency balance. ... No matter how large the deficiency balance, it is the lender that is on the hook for any drop in the property's value, if the borrower walks away from the reverse mortgage.
Walking Away from Reverse Mortgage | Bills.com