When Does A Reverse Mortgage Get Paid Back?

When do I have to payback a reverse mortgage loan in Forest Grove?

Answer:

Reverse mortgage loans in Forest Grove Oregon generally are to be paid off once you die, but can need to be paid back sooner once you no longer make use of the house for your primary home, or do not pay taxes or insurance, or make necessary repairs.

Virtually all reverse mortgages offered in Forest Grove Oregon 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 mortgage must be paid off as soon as the last living borrower or eligible non-borrowing spouse passes away. The loan also ends up being due once the last surviving borrower sells the house or permanently moves out.

A key requirement of a HECM is you live in your property as the primary home. When the home is no longer your principal residence and you are also the sole borrower, your loan will become due.

Every calendar year, you will be required to certify in writing you occupy your property as your primary residence.

Be aware that the property won’t be considered your principal residence if one of the following situations applies:

You’re away for a majority of the year for a non-medical reason; or
You are away over 12 sequential months for a medical-related reason

When you have a co-borrower, your co-borrower may continue living in the house – and the mortgage won’t become due – even though you die or leave the property.

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

Should you receive notice that you’re in default for failure to occupy the home as your principal residence, pay taxes and insurance coverage, or make necessary repairs, make sure you speak to your lender or servicer in addition to a HUD-approved HECM default counselor (which will not impose a fee) or an lawyer right away.