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Inheriting a house with a reverse mortgage. When a death involves a reverse mortgage, your options vary according to the circumstances of the borrower who passed away. Mike Roberts, founder of ...
Sources. Average US Mortgage Debt Increases to $244,498 in 2023, Experian.Accessed July 18, 2024. 2024 Wills and Estate Planning Study, Caring.Accessed July 18, 2024.
Key takeaways. Reverse mortgages allow seniors to borrow against their home equity. If the borrower dies, a reverse mortgage falls to their estate or heirs and must still be repaid.
The reverse mortgage comes due—the loan plus interest must be repaid—when the borrower dies, sells the property, or moves out of the house. Depending on the program, the reverse mortgage may be transferable to a different property if the owner moves.
When a borrower of a reverse mortgage dies, any co-borrowers will still receive the loan benefits, assuming the co-borrower meets all the agreement requirements. If there is no co-borrower, the ...
The homeowner doesn’t have to repay the reverse mortgage until death, or when they permanently move out or sell the home. ... For many homeowners, a reverse mortgage makes it possible to stay in ...
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