Reverse Mortgage Information

There has been a lot of talk about reverse mortgages lately. And because of that, as you can imagine, there is an abundance of information on reverse mortgages and not all of it is true. For many, a reverse mortgage is the solution to some serious problems and they go for it without reading the fine print. Reverse mortgages can be great but you still need to read over every inch before signing.

The question most asked about reverse mortgages is whether or not seniors can sell their houses after receiving a reverse mortgage. A lot of the reverse mortgage information is conflicting and people don't know which sources to trust. But to answer the question, yes, seniors can sell their home even if they have a reverse mortgage. The senior still owns their home as long as they are living in it. However, if they do decide to sell, the reverse mortgage company will demand payment right then and there.

Next people usually want to know what does happen to their homes should they die. The want to know if they bank will hocking their hands before their body is even cold. No, even after you have gone on, if your family chooses to, your house can still remain with the family. When the homeowner passes, the family will be presented with three choices: sell the house, turn it over to the bank or refinance it and keep it.

If the amount of the loan is less than the value of the house it is smart to sell it. If heirs choose to sell they are allotted twelve months by the bank in which to do so. The heirs then pay off the bank and pocket the rest of the money. Heirs must sell the home for the price the home is valued at and if they don't you will be faced with additional fees. The bank does this to discourage people from selling homes dirt cheap to their friends. For more details about reverse mortgages pros and cons, click the link.

The reverse mortgage lender doesn't what the house. They hope they never take possession of the house because they want what is owed to them in cash. And they couldn't care less about how the heirs choose to pay back the loan. They give heirs a few months to decide what they want to do and then allow them to pretty much do what they wish with the house as long as the bank gets what is owed to them. Some seniors who want to leave their homes for their family members to enjoy often get life insurance policies to cover the reverse mortgage. There is a lot of reverse mortgage information on how to make it work best for you; if you just search.