What about repaying Reverse Mortgage?

The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either monthly or with one lump sum. 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.

Repaying a Reverse Mortgage

  • 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.

Michael Cincotta | Phone: 516-541-6700 | Fax: 516-541-6438
378 Willis Ave, 2nd Floor, Mineola, New York 11501
Only Licensed in NY, NJ

Fairview Mortgage Corp located at 378 Willis Ave, 2nd Floor Mineola, NY 11501 is a Registered Mortgage Broker - NYS Department of Financial Services License #A004914, NJ Licensed Residential Mortgage Broker - Licensed by the NJ Department of Banking and Insurance #L060606, NMLS#5936

All loans are arranged thru third party providers