• Question
  • Reverse mortgage holder leaving home for long term care

    Asked by someone from Southington, CT on 2/23/2017

    My Mom has a reverse mortgage on her home in Ct. She has recently had to go to a long term care facility. She has taken out loans to the max and is on Title 19 and cannot pay back the amount owed. No one in the family wants the house. What happens now?

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  • Categories: Reverse Mortgages, Reverse Mortgages & Heirs

Answers

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  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Since a reverse mortgage is a non-recourse loan the family is not responsible if the mortgage amount exceeds the value of the house.

    You can read more in these two articles:

    https://www.newretirement.com/retirement/what-happens-to-a-reverse-mortgage-after-death-or-when-a-reverse-mortgage-becomes-due/

    https://www.newretirement.com/retirement/reverse-mortgage-after-death-heirs-responsibility/

  • Login to rate this answer:   Answered on 2/26/2017
**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.