When Do You Pay Back A Reverse Mortgage?

When must I repay a reverse mortgage loan in Portland?

Answer:

Reverse home mortgages in Portland Oregon usually are due and payable when you die, but might will need to be paid back earlier if you happen to do not make use of the house as your principal home, or do not pay property taxes or homeowner insurance, or complete needed repairs.

Almost all reverse mortgages on the market in Portland OR are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. A HECM home loan needs to be paid back as soon as the last surviving borrower or eligible non-borrowing spouse dies. The mortgage also results in being due when the last surviving borrower sells the house or permanently moves out.

An essential necessity for a HECM is you reside in your property as the principal residence. As soon as the house is no longer your primary residence and you are also the sole borrower, the loan will become payable.

Every 12 months, you are required to certify in writing that you live in your house as your primary residence.

Understand that the home won’t be regarded as your principal residence if one of the following circumstances is applicable:

You’re absent for a majority of the year for a non-medical reason; or
You are absent for over Twelve consecutive months for a health purpose

For people who have a co-borrower, your co-borrower could keep on residing in the house – and the mortgage loan is not going to become due – even if you pass away or leave the house.

A reverse mortgage loan also becomes due if you stop paying your city property taxes or homeowner’s insurance, or do not maintain your house in good repair.
TIP:

In the event you receive notification that you’re in default for failure to occupy the property as your primary residence, pay property taxes and insurance, or make essential repairs, make sure you contact your mortgage lender or servicer as well as a HUD-approved HECM default counselor (which will not impose a fee) or an law firm right away.

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