Reverse Mortgage FAQ’s: What is a Maturity Event?

With most loans, borrowers understand that there is a maturity date. A maturity date indicates the final date for making payments to the loan, including the principal and accrued interest. With a reverse mortgage loans, you will see that there is no maturity date, but a maturity event. A maturity event is an action that would cause the loan to become due.

As long as you understand maturity dates, you should be able to prevent any unnecessary foreclosures before you are ready to leave the home permanently.

A maturity event includes:

1. The property is sold or transferred.

2. The last borrower on the loan passes away.

3. The property is no longer the borrower’s primary residence.

4. The borrower(s) is/are no longer occupying the home for more than 12 consecutive months. This includes if the borrower is no longer staying in the home due to hospitalization or hospice care.

5. The borrower(s) is/are no longer keeping up with their property taxes, insurance and Homeowner’s Association (HOA) fees.

6. The borrower(s) is/are no longer keeping up with home maintenance and repairs. As homeowners, you must continue to maintain your home to liveable standards, which is also important for the safety of your family and yourself.

As long as none of these maturity events occur, you do not have to worry about your loan being due. Some borrowers may see that a maturity event is an advantage over a maturity date, as it allows seniors to continue to age in place.

If you are interested in learning more about reverse mortgages, leave a comment below or call 1-888-808-8486 today!

 

Read Related Articles:

5 Facts About Reverse Mortgages

 The 5 Most Popular Questions About Reverse Mortgages

Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net