Many folks from the retired population may be interested in Reverse Mortgage, but hesitate because they aren’t sure what happens with the mortgage after their death. Below, we’ve listed some important things that families should know about what happens with your reverse mortgage after you pass on.
What Happens After Death?
A reverse mortgage is often the last loan that borrowers will ever need. It is important to do as much research as you can before considering a reverse mortgage to see if it is right for you and your family. The good thing about reverse mortgages is once the loan closes, the terms do not change. When a family member has passed, the reverse mortgage becomes payable. The surviving spouse, heirs, or other family members have the option to repay the rest of the loan and keep the home entirely, or sell the home to walk away completely.
The good thing with reverse mortgages is that there are several different options that can benefit you and your family members. With each option, there are a specific set of requirements. When a family member passes, it is important to make one of these decisions for the reverse mortgage or the lender will facilitate the repayment.
Reverse Mortgages Are and Are Not A Typical Loan
A great advantage of reverse mortgages is that you do not need to make a monthly payment or take money out to pay off this type of mortgage. Once it is set as part of your retirement plan, you are set. Instead of owing the money to the loan, you receive funds from the loan! This makes it easier for you to keep track of your finances and have a happier retirement.
However, with a reverse mortgage you are still required to pay for your home insurance and taxes. This stipulation will be required with any loan, so it does not make reverse mortgages any different. Reverse mortgages allow the retirement population to relax financially!
It Is Important to Maintain Communication
As a family member of your loved one with a reverse mortgage, it is important to keep in contact with the loan servicer throughout the process. This makes everything run more smoothly when deciding what the best option is for the home after your loved one’s death.
If you plan ahead, communicate with a servicer, and choose the best option suitable for your family’s situation, then you will be prepared for whatever the future may bring. Idaho Reverse Mortgage offers many benefits for you and your family to plan for retirement. For more information, give us a call today!