What Happens When My Spouse Dies?
If my spouse dies or moves to a elderly care facility, what happens with my reverse mortgage loan in Portland Oregon?
Answer:
It will depend on whether or not you as well as your spouse are co-borrowers on the Portland reverse mortgage loan, and when the mortgage was funded.
Most reverse mortgages that property owners in Portland apply for are usually Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Inside of the rules governing HECMs, if you live with a spouse, it is a good plan to make your spouse a co-borrower whenever you apply for a HECM if you both fulfill the qualifying age of 62. If you’re a co-borrower, you can keep residing in the property even though your spouse passes away or moves out to a elderly care facility. A surviving co-borrower also can get money from the home loan.
Sometimes, just one of the spouses is listed as a borrower on the home loan. As an example ,, one spouse might not have been 62 at the time the loan funded, and wouldn’t have been qualified to be a HECM reverse mortgage borrower. In this particular scenario, what will happen to a surviving non-borrowing spouse relies upon the timing of when they got the Portland Oregon HECM.
Any HECM loans in Portland Oregon with case numbers assigned on or after August 4, 2014, permit qualified non-borrowing spouses to stay in the home once the borrower dies assuming they meet certain initial and ongoing requirements. To qualify as an “eligible non-borrowing spouse,” you are required to:
Be married to the borrower at the time of the loan closing and stay married to the borrower for his/her life time;
Note: For those who marry the borrower AFTER he/she takes out a HECM, you won’t be eligible to stay in the house.
Be specifically named as a non-borrowing spouse in the HECM documents; Occupy, and continue to inhabit the property as your primary residence; and The borrower must certify at the time of the mortgage closing, and every year afterwards, that you are her / his spouse; you are required to certify at the time of closing that you’re an qualified non-borrowing spouse.
If you are a non-borrowing spouse, make sure your spouse mails the annual certification and that you abide by each of the requirements applicable to you so that you may be able to remain in the property once the borrower dies.
If you have satisfied each of the conditions above, you as an eligible non-borrowing spouse may live in the property once the borrower passes away if you:
Are in a position to prove legal ownership or obtain the legal right to stay in the house (for instance, a lease) in Ninety days of the borrower’s passing.
Note: Be sure you meet this qualification while the borrowing spouse remains alive, due to the fact 90 days is really a short time. You might need to talk to your lawyer.
Satisfy the obligations of the mortgage loan to pay property taxes and insurance protection and maintain the home.
Yearly certify that you’re the late borrower’s non-borrowing spouse, and inhabit the house, securing the loan as your principal residence.
Don’t forget that even though you might be allowed to stay in the home, you will not be permitted to have any money from the reverse mortgage, this includes any cash remaining in a set-aside account established for the payment of property taxes and insurance coverage.
To make sure you and your spouse fully grasp these rules and meet these conditions, talk to your mortgage provider or servicer, a HUD approved counselor, or legal representative – they will help you be ready in the event the borrower pass away before you.
If you are a non-borrowing spouse or partner in a house with a HECM which has a case number issued before August 4, 2014, you won’t have the ability retain your Portland Oregon property without repaying the loan unless of course your mortgage lender or servicer chooses to apply to HUD to allow you to stay in the home once the borrower passes away. You should get hold of your loan provider or servicer to ask if they might seek this authorization for you. You together with the mortgage lender or servicer will need to satisfy a number of conditions
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