inheritance

Forum|Forum|2 years ago
July 26, 2023
2 replies
7 views

I live in colorado, my mom passed away and she had a reverse mortgage with other bill that had to be paid, I hired an attorney in MA

Ask the Experts - Retirement - July 2023

Denisev1220

Level 4

Hello,

In order to better assist you, can you clarify what your question is please?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer".

heidis1

Level 4

Hi gander2694,

This is what I found on reverse mortgages that may help with your situation:

If the loan balance is less than the home value, your heirs can use the sale proceeds to repay the loan and keep the difference. If the balance owed on the loan is more than what the home is worth, your heirs can sell the home for at least 95 percent of the current appraised value in order to pay off the loan.

When the homeowner who took out the reverse mortgage passes away, the balance of the reverse mortgage becomes due. This can be quite the hefty bill, because the homeowner doesn’t have to make any loan payments during their lifetime. This means that the responsibility for making sure the mortgage is paid off falls on you, the heir.

Here are links that may help:

With a reverse mortgage loan, can my heirs keep or sell my home after I die?

Inheriting a House with a Reverse Mortgage - What You Need to Know

Thank you for asking.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer".