Are you a senior citizen in the US who is facing difficulty in having to stretch their pension money amidst rising costs? If so, a reverse mortgage loan is the best solution for you. The loan option allows you to add to your monthly income by selling a portion or all of the home’s equity.
The reverse mortgage loan option is the best solution for senior individuals whose restricted cash flow has dampened their lifestyle. Having to bag groceries every day and not having money left for anything else is not life. A reverse mortgage loan allows the borrower to live a comfortable post-retirement life as he or she can afford all the good things in life that money can buy, and not just live for subsistence.
One important consideration regarding reverse mortgage is repayment of the loan amount. You should continue reading if you are interested to know about how the reverse mortgage lender collects the loan amount.
About Repayment of Reverse Mortgage
Know that a reverse mortgage lender will not ask for repayment from your or your heir’s personal financial resources. The debt will be repaid after the borrower passes away. In case the spouse chooses to continue to live in the house, the loan settlement will be delayed until his or her death. Only when both the partner passes away, will the lender collect the amount.
However, there are cases when the reverse mortgage lender can foreclose the home to settle the loan payment. Following are some of the conditions in which the lender has the right to foreclose the home to obtain the payment.
* The borrower does not stay in the house for 12-months,
* The borrower does not pay property taxes
* The borrower fails to make insurance payment
* The borrower becomes bankrupt and cannot make loan fees and other payments
* The borrower donates the property
* The borrower rents out the property
* The borrower makes significant changes to the property that could affect the sale price
* The borrower has added a new owner to the house title
Before taking a reverse mortgage loan, it is recommended that you consult with a professional.