Can I lose my home with a reverse mortgage?

Can I lose my home with a reverse mortgage?

A reverse mortgage can be an amazing financial tool for seniors looking to access the equity in their homes and pay off their current mortgage. One common concern is whether you can lose your house with a reverse mortgage. The answer is yes and no.

Unlike a traditional mortgage, where you make monthly payments to own your home outright, a reverse mortgage allows you to borrow against your home's value. You receive funds as a line of credit, fixed monthly payments, or a combination of both. However, the loan balance grows over time as you access funds and interest accrues. Because there are no required monthly payments, as long as you’re alive and living in your home, you won’t lose your house due to having a reverse mortgage.  Here’s the yes part; while you don’t have a mortgage payment you are required to pay your homeowners insurance and property taxes.

The reason you could potentially lose your home would be if you don’t pay your property taxes.  The county you live in could foreclose if those taxes aren’t paid.  The real catch is that even if you didn’t have a reverse mortgage; you still need to pay your property taxes or face a possible foreclosure.

At the end of the day a reverse mortgage wouldn’t be the reason you lost your home.

To learn more about reverse mortgages and to find out if one is right for you visit https://reganteam.com/reverse-mortgage/ or call 707-508-8473