When does a reverse mortgage loan need to be repaid and how much is owed?


It is of great use to seniors to know when the principal and interest with a reverse mortgage loan are due. Actually one can outlive the loan and never owe more than the amount originally borrowed, but even though the senior remains in title of the property, while receiving payments are from the lender, one should be familiar how and when a reverse mortgage loan becomes due, even though no foreclosure can be attempted on the property.

The reverse mortgage loan becomes due when:

  • the last surviving borrower moves out, sells the house, or passes away
  • all borrowers leave the house permanently
  • the last surviving borrower fails to live in the house for twelve successive months (for example, due to illness)
  • property taxes and insurance are not paid
  • property is not maintained properly and begins showing signs of unreasonably deteriorating condition and the owner does not fix problem areas in a timely manner

When the reverse mortgage loan finally becomes due, principal, interest and fees are all covered from the sale of the real estate and accompanying assets. The remaining equity, if any, is handed down to the borrower(s) or their heirs. No debt should be passed on to the estate or the heirs.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: