How Do Reverse Mortgages Work?

Some of you have heard about the term reverse mortgages. However, you might not know just what this is. This sort of loan is for senior citizens. You will notice that they aren’t repaid until the homeowners pass away as well as the last surviving homeowner is no longer at the home.

This mortgage is to be paid off by the estate. They have six months to pay this. If anything is left to be paid, you will then learn that the State takes this over. When that happens, they will then sell the home. They might have to sell it for less than the balance. If that happens, then the estate is then liable to have to pay the rest of the mortgage that is still standing. The reason this is considered to be reversed is because of when it is to be paid back. This is paid back after they pass and not while they are living on a monthly basis like how it normally is.

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