A frequently asked question about reverse mortgage loans is, “When do I have to pay it off?” There are several scenarios regarding when a reverse mortgage would have to be paid off. The first would be when the last borrower passes away or moves out for more than a year, so the home is no longer considered their primary residence.
If the home is not maintained properly, or the borrower fails to stay current on either their homeowners’ insurance or property taxes, that would also cause the loan to come due for payoff. Under these circumstances, the borrower or their heirs have two ways to satisfy the HECM reverse mortgage loan. They can simply choose to sell the home, pay off the mortgage and keep any remaining balance.
If the loan balance exceeds the value of the home at that time, the heirs can sell the home at 95% of the current appraised value, and FHA Mortgage insurance will make up the difference. The second option is that the heirs refinance the mortgage and either move into the home themselves or turn it into an investment property by renting it out. But one circumstance borrowers don’t have to worry about is outliving a reverse mortgage, because the term of the loan is the youngest borrower’s 150th birthday.
To find out more about how reverse mortgages work, call us today.
Owen Coyle
I’m Owen Coyle, an 87 year young “Seasoned Citizen” living in Escondido California.
As of April 1, 2023 I’ll be starting my 23rd year as a Reverse Mortgage Specialist. I have no desire to retire, so as long as my health remains good, I’m planning on helping senior homeowners obtain Reverse Mortgages at least until I’m 90, and hopefully a few years beyond.
I absolutely have a passion for working with senior homeowners, improving their “Quality of Life” and giving them “Peace of Mind” by setting up Reverse Mortgages for them.
A Reverse Mortgage is not for every senior, but when “It Fits”, it can absolutely change their life for the better. When I meet with seniors, I always suggest that they include as many of their children as possible in our meetings. I always want to have the entire family “On The Same Page” and understand how the Reverse Mortgage will benefit their parents based on their particular situation and needs.
Most Reverse Mortgage companies do business by using the telephone, email or US Mail and use a notary to take care of the Reverse Mortgage “Application and Closing Documents”.
I do business “The Old Fashion Way”. I go to the seniors’ home and sit down with them at their kitchen table and talk with them “Face to Face”. I make sure that I answer all their questions and that the entire family understands how the Reverse Mortgage works.
I’m very concerned about how much “Misinformation” and “Misconceptions” about Reverse Mortgages there are out on the street, so I’m on a mission to get “The Truth” out to as many seniors as I can as I talk to them individually and through my Reverse Mortgage workshops and seminars.
Please call or email me (760-334-6155, owen.coyle@gmail.com) with the information that I need and I will prepare a "No Obligation Benefits Analysis" for you. This information will be used to create a computer printout that will show the approximate amount of money that will be available for you and the various payment options that will be available to you.
I’m Owen Coyle, an 87 year young “Seasoned Citizen” living in Escondido California.
As of April 1, 2023 I’ll be starting my 23rd year as a Reverse Mortgage Specialist. I have no desire to ret...
Read More »
I’m Owen Coyle, an 87 year young “Seasoned Citizen” living in Escondido California.
As of April 1, 2023 I’ll be starting my 23rd year as a Reverse Mortgage Specialist. I have no desire to retire, so as long as my health remains good, I’m planning on helping senior homeowners obtain Reverse Mortgages at least until I’m 90, and hopefully a few years beyond.
I absolutely have a passion for working with senior homeowners, improving their “Quality of Life” and giving them “Peace of Mind” by setting up Reverse Mortgages for them.
A Reverse Mortgage is not for every senior, but when “It Fits”, it can absolutely change their life for the better. When I meet with seniors, I always suggest that they include as many of their children as possible in our meetings. I always want to have the entire family “On The Same Page” and understand how the Reverse Mortgage will benefit their parents based on their particular situation and needs.
Most Reverse Mortgage companies do business by using the telephone, email or US Mail and use a notary to take care of the Reverse Mortgage “Application and Closing Documents”.
I do business “The Old Fashion Way”. I go to the seniors’ home and sit down with them at their kitchen table and talk with them “Face to Face”. I make sure that I answer all their questions and that the entire family understands how the Reverse Mortgage works.
I’m very concerned about how much “Misinformation” and “Misconceptions” about Reverse Mortgages there are out on the street, so I’m on a mission to get “The Truth” out to as many seniors as I can as I talk to them individually and through my Reverse Mortgage workshops and seminars.
Please call or email me (760-334-6155, owen.coyle@gmail.com) with the information that I need and I will prepare a "No Obligation Benefits Analysis" for you. This information will be used to create a computer printout that will show the approximate amount of money that will be available for you and the various payment options that will be available to you.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
