Reverse Mortgage Tips and Planning

What happens when a reverse mortgage homeowner passes away? Well, the heirs must communicate their plans for the home to the loan servicer.  FHA requires loan servicers to send a letter stating that the balance of the loan is due, and the heirs or estate must respond within 30 days or else foreclosure proceedings may be initiated.  The advice I give to all my clients is that being proactive is the best practice.  First, the heirs should be aware that there is a reverse mortgage in place which requires involvement and communication amongst the family.  Secondly, when the reverse mortgage borrowers have passed, the heirs should contact the servicer as soon as they can to avoid any possible lapse in time or potential miscommunication with the servicer.  The Wall Street Journal recently published an article discussing this exact topic and tips to avoid surprises with your reverse mortgage.  Read the full article here.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez
Certified Reverse Mortgage Professional, CRMP
NMLS# 473353
Toll Free (877) 500-0454
Local (702) 460-6222