I wanted to address the two most common questions that I get regarding reverse mortgages…
Question: What happens if I die? Will the lender be taking my house?
Answer: No. After you pass away, your heirs may pay the loan balance in full with cash or by refinancing the debt and they can keep your home.
Question: What happens if the loan balance becomes greater than the value of my home?
Answer: No matter how large the loan balance becomes, you have the right to continue to live in the house. The lender cannot take over your home as long as it is your principle residence. Besides, you will never owe the lender more than the value of your home. HUD will pay the shortage for you if there is any.
If you or someone you know has questions about reverse mortgages please have them reach out to our office. We'll be happy to help them!
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
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