What about repaying Reverse Mortgage?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. 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.

  • 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.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

American Pacific Mortgage

JOHN E. BURGOYNE III, Branch Manager
NMLS # 86729/96796
Branch NMLS#1850
AZ Corp BK # 0906702/0114165

1256 W Chandler Blvd., Suite 30
Chandler, AZ 85224

Phone: (480) 883-6633
Email: jeb3@apmdirectlender.net

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© 2020 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.

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