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Many seniors use reverse mortgages to tap into their home equity in order to maintain their standard of living during retirement. Those who do so need to make sure their heirs are aware of the mortgage, because when the borrower dies, they will have to decide on a course of action quickly.<\/p>\n
The heirs can keep the property, sell it, or turn it over to the lender. That decision is usually determined by whether there is equity left in the property.<\/p>\n
Reverse mortgages are \u201cnonrecourse\u201d loans, which means that if the loan balance exceeds the home’s value, the lender cannot take possession of the estate\u2019s or the heirs\u2019 other assets.<\/p>\n
After the lender is notified of the borrower\u2019s death, an appraiser will determine the home\u2019s market value. The amount due to the lender is the lesser of the loan balance or 95 percent of the home\u2019s appraised value. (The remaining 5 percent is paid (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Many seniors use reverse mortgages to tap into their home equity in order to maintain their standard of living during retirement. Those who do so need to make sure their heirs are aware of the mortgage, because when the borrower…<\/span><\/p>\n