The Heirs’ Responsibility When It Comes to a Reverse Mortgage
When a homeowner has a Reverse Mortgage, the loan typically becomes due when the borrower sells the property, the last surviving borrower permanently moves out of the home, or when the last surviving borrower passes away. In the case of the latter, the heirs become responsible for the loan. Responsibilities Upon the last borrower’s passing, the heirs become responsible for a number of things regarding the loan. We’ll explore each of these responsibilities below. When your clients choose to get a reverse mortgage, we encourage them to ensure their heirs are aware of the potential responsibilities. By understanding their obligations, the heirs can make sure they are able to fulfill their responsibilities and avoid any potential difficulties. Contributor SmartFi