A reverse mortgage is a brilliant option for seniors from Palm City who need money for medical bills, home remodeling, or to use the money to live their retirement in Florida comfortably.
Reverse mortgages typically must be repaid once a homeowner sells or no longer lives in their house. But how are reverse mortgages settled after you die? We’re going to take a look at what happens so you and your heirs can be prepared when the time comes.
What is a Reverse Mortgage?
A reverse mortgage is a type of loan that’s exclusively available for homeowners ages 62 and over who want to use their built-up home equity. To be eligible for a reverse mortgage, your home must be your primary residence, and you must either own the house outright or have a low mortgage balance.
A reverse mortgage lets seniors gain funds without being stressed about immediate repayments. But once you leave the house, the mortgage reaches maturity and has to be repaid.
Need more information on how a Florida reverse mortgage works? Call our mortgage professionals for assistance.
What Happens After the Borrower Dies?
When a borrower dies, the responsibility of the house will be given to the person named in the will. If a borrower dies without a will, the home will be handed down to direct descendants or close relatives.
After the borrower dies, the heir takes charge of paying the mortgage.
The homeowner can still leave the property to their heirs, even if there is still money owed for the mortgage. An heir could own the house after the borrower dies. But they’ll be in charge of repaying the loan balance.
If you want the best reverse mortgage deals available, get in touch with a Treasure Coast mortgage broker.
How Do You Pay Off the Loan Balance?
There are several ways to pay off the loan balance, but it will depend on what the heir wants to do with the property. Let’s check out some of the available options.
Keep the Property
If the heir wants to keep the property, they’ll just have to pay off the full mortgage.
If you’re considering a reverse mortgage in Palm City, FL, contact our mortgage experts for assistance.
Sell the Property
Selling the property is one of the most common methods to settle a reverse mortgage. This is the easiest way to satisfy the terms of the loan if the heir doesn’t have the money to pay for the mortgage.
Provide Lender a Deed in Lieu of Foreclosure
If selling the house is troublesome for the heir they could just hand over the keys to the lender.
With a “deed in lieu of foreclosure,” the lender will take back the property, and the debt will be settled
Need Help With Settling Reverse Mortgages?
The process of settling a reverse mortgage might seem challenging but it doesn’t have to be if you get assistance from a mortgage specialist.
For further inquiries, contact Element Home Loans of Treasure Coast.