• Question
  • What happenes after I die?

    Asked by someone from Hackberry, AZ on 7/17/2015

    My husband had me do a RM against my better judgement. I did it under duress. The company that did the RM said we had no equity in our home.because we only owned it for 3 yrs.They were not going to give us any money. We said, we were not going through with the RM then. They decided to give us $4000.00. We saved that for emergencies like our well going down. That happened and cost us $2000.00. Then I looked up the contract for the RM. I figured out they just added the $4000.00 to our debt. This whole thing has left a bitter taste in my mouth. I am old and not well and live 30 miles or more from the nearest town and hospital. I can't afford to leave any other way but in a body bag. We had paid $1400.00 cash for it at least a year before the home was put on the 5 acres we owned. They made us sign the property over to them jointly with the mobile home. So, if we paid cash for the property before the house was on it, why isn't the cost of the 5 acres show as equity? My husband was old and sick when we did this. He was under a lot of stress to get out from under the house payment. I hated doing this RM! I was not given to understand there would be so many fees for years to come. My husband is dead now as of !/25/15. I can never afford to buy the home back at my age on a fixed income. This is just wrong in so many ways! What will happen when I die? Will they go after my family to pay the debt? Thank you, Mary

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  • Categories: Reverse Mortgages, Reverse Mortgages & Heirs

Answers

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  • When you die, your Estate will inherit your home, and they'll decide what they want to do with the home, just like with a traditional Conventional mortgage. If you owe more on the Reverse Mortgage then the value of your property, neither you or your Estate is responsible for the negative amount. The FHA insurance will be used to cover the loss.

  • Login to rate this answer:   Answered on 7/21/2015
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • There's a post on this topic here: http://www.newretirement.com/blog/2015/01/06/what-happens-to-a-reverse-mortgage-after-death-or-when-a-reverse-mortgage-becomes-due/

  • Login to rate this answer:   Answered on 7/22/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.