Relocating after a Reverse Mortgage?
If I receive cash for the reverse mortgage, for some reason I use the cash and realize that money will be added each month that I live, what happens if I decide I would like to move to another location, like perhaps move with one of my children (example) do I have to pay all the money back that reverse mortgage has given me. I know someone who got a reverse mortgage, invested the money to build another house and has abandon the home. Just wondered if I got the reverse mortgage and had to move with one of my children, what would happen to my home. Thanks by Eleano_445_860 from Lake Mary, Florida. Apr 3rd 2012
Phil Stevenson (phil.stevenson)
#91 ranked lender in Florida - 4 contributions
Hi there,If you get the reverse mortgage, then you cannot move out without the loan becoming due and payable. What that means is you must then sell your home, pay off the principal and interest that has accrued and the equity or profits are yours to keep.Please let me know if I can be of further assistance. I specialize in Reverse Mortgages and I'm the Florida rep for one of the largest reverse mortgage lenders in the country, Genworth Financial.Sincerely,Phil Stevenson786-586-3336phil.stevenson@genworth.com
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
You would sell your home, payoff your mortgage and keep the difference... WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Under the rules, once you vacate the home that is securing the reverse mortgage, you will have not more than 18 months before the property must be sold or refinanced into a forward mortgage, or paid off from other sources. If you abandoned the home, HUD would likely foreclose and any equity that remained would be lost. Before you decide to take out a reverse mortgage, you should discuss your near and long term plans with a Certified HUD Reverse Mortgage Counselor. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com
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