In reverse mortgages do you have to pay back what was borrowed in one lump sum?
By
♥Hon♥
Posted on
11/16/09 Total Answers
3
Answers-
I thought a reverse mortgage was where the "bank" paid you a monthly payment in exchange for gaining equity in your house. I could be wrong about that though, better google it!
Answer by :
I need more Cowbell!® On Date
2009-11-16 12:04:07
no you get a monthly amount that is taken off the value of the home.
Answer by :
cannot_remember_chit On Date
2009-11-16 12:06:08
You should be able to pay back the money on a monthly basis, but I recommend that you consult the lender and your legal adviser.
Reverse mortgages are payable only when the last surviving borrower dies, sells the property, permanently moves out or when he/she reaches the end of the loan period. A 'permanent' move implies neither you nor the co-borrower has occupied the home for past one year continuously.
In case you pass away, the lender won't take away the title if your heirs can pay off the loan either by selling the home or refinancing the loan.
When the loan may be in default:
* You or the co-borrower has filed bankruptcy
* The borrower donates or abandons his/her home
* You haven't paid property taxes
* You haven't maintained your home or paid for repairs
* Your home is no longer insured
Moreover, if the loan has an acceleration clause, the lender may require you to pay down the mortgage under the following conditions:
* A co-owner has been added to the property title
* You've rented out all or part of the property
* You've taken out a new loan on your home
* You've changed the property's zoning classification
In any case, check out the loan documents to make sure under which situations your loan may be in default, and you may have to pay it back asap.
Look at the site below for other info on reverse mortgages - I found it really helpful
