How Reverse Mortgages Affect Your Heirs
When a borrower with a reverse mortgage passes away, the loan balance becomes due. Heirs have several options:
- Repay the loan by refinancing and keep the home.
- Sell the home to cover the balance.
- Let the lender sell the property if the balance exceeds the home’s value.
Non-recourse clauses ensure that heirs are not responsible for any shortfall beyond the home’s value.
Case Study:
Laura’s children were initially unsure how to handle her reverse mortgage after her passing. With help from Evoque Lending Reverse, they sold the home and used the proceeds to pay off the loan, keeping the remaining funds as part of her legacy.
It benefits you to be well-informed. Should you have any further questions or need clarification, our seasoned licensed reverse mortgage specialists are available to go over any details you like.
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