What about repaying Reverse Mortgage?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either monthly or with one lump sum. The following lists provide information regarding repayment of a reverse mortgage.

A reverse mortgage comes due when under the following conditions:

  • Death of the homeowner
  • Upon sale of the home by the homeowner
  • If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
  • Upon one of the instances of default listed below.

When the reverse mortgage becomes due there are two options for paying it off.

  1. Proceeds from the sale of the home
  2. The heirs of the homeowner can refinance the loan

Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of reasons for which a borrower would find themselves in default.

Repaying a Reverse Mortgage

  • Failure to pay property taxes
  • Failure to keep the home in good repair
  • Failure to insure the home
  • Taking of new debt on the home
  • Bankruptcy
  • Abandonment or donation of the home
  • Eminent domain

To apply for your reverse mortgage click here.

Shannon Smith-Wood
Colonial Mortgage Group

3261 Old Washington Rd, Suite 1011, Waldorf, Maryland 20602
Phone: 410-798-6611 | Fax: 410-798-6618
Company NMLS: 70452 & Individual NMLS: 3964
www.nmlsconsumeraccess.org

Residential Mortgages provided by Colonial Mortgage Group
Licensed: MD LO 5908 & MD 17542;  DC MLO3964 DC MLB70452; FL MBR1384
Licensed by the Virginia State Corporation Commission License #MC5185 & MLO-18339VA. Licensed by the PA Department of Banking License # MB35217 & PA LO 47550

By refinancing your existing loan, the total finance charges may be higher over the life of the new loan.