Thank you for your patience; I was unable to access this question as someone else had a lock on it.
A reverse mortage is a no recourse loan, so if the loan amount exceeds the home's value, the lender cannot go after the rest of the estate; their recovery is limited to the home that secured the reverse mortgage.
The estate rep will notify the lender of the death of the owner; the lender then will, within 30 days, send out a federally approved appraiser to determine the fair market value of the house. The lender is entitled to the balance owing, or 95% of the fair market value-whichever is less.
If the heirs do not wish to keep the property, the rep would sign a Deed in Lieu of Foreclosure, essentially giving the property to the lender.
If they do wish to sell it or keep it, the lender must be paid 95% of the appraised value, or the amount of the loan, whichever is less.
The heir is entitled to 2 90 day extensions, so long as they are actively attempting to sell the home.
Further questions? Please post here to continue the chat.
Satisfied? Kindly rate positively so I receive credit for assisting you. I hope that you feel I have earned
5 stars 🌟🌟🌟🌟🌟*****
as I strive to provide my customers with great service. ☺️
(no additional charges are incurred).
Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.