What happens to a reverse mortgage when you move?
A reverse mortgage can be a great option for senior homeowners, as it can help to increase cash flow and allow them to stay in their homes longer. But what happens when the borrower moves out?
Reverse mortgages become due when the last borrower on the mortgage passes away, sells the home, or moves out of the home for 12 months or longer. Typically, when a reverse mortgage borrower moves out of the home for 12 months or more, he or she is moving permanently to an assisted living facility or with loved ones. Moving is considered default, the mortgage comes due and the home likely must be sold.
What if your spouse is living in the home but not listed on the reverse mortgage? Read more about non-borrowing spouses here.
Origin Title partners with real estate agents who help seniors downsize so they can stay in their home as long as possible.