Reverse Mortgage FAQ’s: Will I be able to keep my parents’ home?

One of the most common questions that adult children ask about reverse mortgages is, “Will I be able to keep my parents home?” Many adult children help their parents with their finances, especially with those who are no longer able to do it themselves. A reverse mortgage can be a great idea for homeowners who are at least 62 years old, as it allows them to continue to age in place without having to make additional monthly payments.

The answer, is a simple “yes.” Many children who look to keeping their parents homes are able to have the option to keep it, even if there is a reverse mortgage on the property.

Adult children and heirs should be able to know their options when the reverse mortgage loan becomes due. To learn when reverse mortgage loans become due, check out this previous article, “When are reverse mortgages due?” 

1. You are able to keep the home: If you are looking to keep the home, you can refinance the loan and pay back the loan based on the new terms. To refinance the loan, the children/heirs must work with the lender to be able to refinance the loan. Many adult children who seek to keep their parents home do it for a number of reason, including sentimental value and the importance of keeping the home in the family

2. You can sell the property: If you are interested in no longer keeping the home, heirs are able to sell the home in order to satisfy the reverse mortgage loan.Heirs have up to 12 months after the loan becomes due to sell the property. If the proceeds from the sale is more than what the house is worth, heirs are able to keep the difference.

3. You can walk away from the property: Another option for heirs and children, is that they can walk away from the home. If you leave the home to the bank, you will not owe anything to the lender and the home itself will help satisfy the loan.

If you are interested in learning more about reverse mortgages, speak with an expert at 1-888-808-8486.

Read Related Articles:

Top 5 Reverse Mortgage Questions

Reverse Mortgage Info for Children of Senior Parents

Do My Heirs Have to Repay the Reverse Mortgage Loan? 

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