Can You Lose Your House With A Reverse Mortgage?
The answer is yes, you can lose your home with a reverse mortgage. However, there are only specific situations where this may occur: You no longer live in your home as your primary residence. You move or sell your home.
How long can you stay in your home with a reverse mortgage?
In the HECM program, a borrower generally can live in a nursing home or other medical facility for up to 12 consecutive months before the loan must be repaid. Taxes and insurance still must be paid on the loan, and your home must be maintained. With HECMs, there is a limit on how much you can take out the first year.
Reverse Mortgages | FTC Consumer Information
How many people have lost their homes with a reverse mortgage?
A USA Today investigative report last year found that following the Great Recession, nearly 100,000 reverse mortgages failed, "blindsiding elderly borrowers and their families and dragging down property values in their neighborhoods."
How Reverse Mortgages Backfire in Low-Income, Minority Neighborhoods
What happens if you dont pay reverse mortgage?
What happens if I don't pay my property-related expenses or don't maintain my home? Not meeting the conditions of your reverse mortgage may put your loan in default. This means the mortgage company can demand the reverse mortgage balance be paid in full and may foreclose and sell the property.
Frequently Asked Questions About Reverse Mortgages
Who owns the house after a reverse mortgage?
No. When you take out a reverse mortgage loan, the title to your home remains with you. Most reverse mortgages are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs.
If I take out a reverse mortgage loan, does the lender own my home?