Reverse Mortgages and Nursing Homes

\r\nAs more and more seniors are turning to reverse mortgages to enjoy their retirement, other ramifications are starting to appear as these borrowers move to nursing homes or assisted living facilities. Family members that stand to inherit the homes, estate supervisors that wish to rent out the property to assist with finances and spouses that wish to downsize may all be in for a rude awakening when it comes to a reverse mortgage.\r\n

A homeowner that has a reverse mortgage on their property, and then moves into another property, is required to pay back the amount given within 12 months. Due to the fact that most borrowers for reverse mortgages are seniors, most lenders check up on the borrowers to assure they are still alive and still residing in the home. If a tenant is found in the home, the lender can require the full amount within 30 days, or put the home into foreclosure. When dealing with a loved one’s assets that has a reverse mortgage, it is best to consult a real estate attorney as to option available.\r\n