Does The Lender Own Your Home With A Reverse Home Loan?

If I sign up for a reverse mortgage loan, does the mortgage provider own my Portland house?

Answer:

No. Once you take out a reverse mortgage, the title to your Portland OR property remains with you.

When you move out, sell your house, or the last living borrower or eligible non-borrowing spouse passes away, you or your estate need to pay off the HECM loan, but you will never ever have to pay above the appraised value of the property.

The reverse home loan balance includes the amount you have received in cash, in addition to the interest and fees which have been included with the loan balance each month. To pay off the reverse mortgage, you or your heirs might have to sell the home.

The vast majority of reverse mortgages are Home Equity Conversion Mortgages (HECMs) in Portland OR. The Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), insures HECMs. Similar to a standard mortgage, with a HECM you are borrowing money and utilizing your property as security for the reverse mortgage loan. You must still pay for property taxes, homeowner’s insurance, and make repairs needed to take care of your property or the lender can foreclose on the home. HECMs additionally require you to utilize the home as the primary residence.

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