Reverse Mortgage FAQ
We understand that there will be a great deal of questions when you are considering whether a reverse mortgage is right for your situation which is why we invite you to call us anytime day or night to go over your specific situation. However, here are some common questions you might have, but again, as a reminder, every situation is different and it is best to ask about your specific situation when you can, and why not? It’s completely free.
(1) What happens when a person dies or the last person leaves the house on a government insured reverse mortgage?
- The estate can pay back the money that is owed to the Reverse Mortgage lender and they will release their lien.
- The estate can sell the house pay back the lender and the estate or heirs will keep any money that is left over. (The lender usually allows six months for this to be completed. On a case by case basis they will extend it for six months)
(2) What happens is the property is sold and the amount of obtained does not satisfy the loan?
When the property is sold and more money is owed then the house sells for the FHA Mortgage insurance will pay the difference and the estate owes nothing.
(3) Can I get a reverse mortgage on a Condominium?
Yes, reverse mortgages are not limited to single-family detached homes. In many cases, you can qualify for a reverse mortgage on a condominium, but it must be your principal residence. (more on Condo reverse)