In the case of reverse mortgages, the method by which the homeowner repays the loan depends on the conditions under which the loan ends. There are two main conditions that will determine when to repay a loan.
One of the conditions is the final survival of the borrower before the loan is paid off. The loan must be repaid before any title or residence deed is transferred to the legal heir of the property.
The second condition is whether you decide to relocate or sell your home for some reason.
The decision on how to repay the loan is now the responsibility of the deceased's heir or executor or executor.
Some of the ways they choose to repay the outstanding loan balance are as follows:
- The heir can choose to repay the outstanding loan by any legal means. This means that they can use any of their own funds or the money they choose.
- They may decide to provide "horizontal" mortgages to houses on a regular basis.
- They may just decide to sell their homes and use the funds to sell the home to repay the outstanding loan balance.
- They may also decide to repay the loan balance with any funds left in the estate.
What happens when reverse mortgage loan borrowers decide to spend the rest of their lives at home for some reason? Maybe they just decided to move to another place.
Or maybe one of them has a secondary disease. These are the serious issues that you should consider when considering reverse mortgages. Where does it end? What is the final result?
There are only reasons to believe that before the loan was repaid, not all people with reverse mortgage loans were still at home. Maybe they do believe they will live in their home until their death, or until the loan is repaid, but they are forced to move because of unforeseen circumstances. This is why you must plan ahead. If you decide to move or sell a house at some time in the future, you should try to know exactly what you will do.
There are even homeowners who choose to use their reverse mortgage as a line of credit until the end of the loan. It is certainly advantageous to use credit lines rather than monthly payments, especially because this allows homeowners to access his funds earlier in this way. Another advantage of the monthly reverse mortgage credit line is that, even during times of financial hardship, the value of the home increases, and the ever-increasing amount of credit may be greater than the "surplus" assets.
However, when all the arguments and practices are one way or the other, the reverse mortgage loan must be repaid to the lender. If your family's assets are higher than the loan balance after your death, your heir will inherit the difference. And this means your heirs, not the lenders, get the house.
This means that in this case, this is a win-win for all stakeholders.
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Orignal From: How do I repay my reverse mortgage and what should I keep?
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