What Happens to My Spouse's House If It Has a Reverse Mortgage?
Senior residents can take a reverse mortgage on their homes. This product is allowed by lenders to borrowers who are of 62 years or older. The main aim of this kind of mortgage is to enable the senior residents to meet their retirement expenses and enjoy the rest of their lives. This mortgage differs markedly from normal mortgage products in that in a reverse mortgage the homeowner is not expected to make any principal or interest payments at least until after the death of borrower or borrowers as in the case of co-borrowing. The payment for the reverse mortgage falls due when the borrower moves out permanently, sells the house or dies. The amount payable is the sum of the loan balance and accrued interest on the property. It is important to have a wrongful death attorney, for these types of situations.
What happens if the death of the Spouse is wrongful death?
Since the death of the borrower is one of the triggers for the repayment for the reverse mortgage, you will need to ensure that you have all the resources needed to repay the loan. In the event that the death was not by natural causes and you suspect fault, then you can seek the services of a wrongful death attorney in Orlando who will advise you on how to approach the case so that you recover the damages due to you as the victim. The law states that the property to which the reverse mortgage is attached passes down to the heirs when the borrower dies. In the case that the husband, who was a borrower dies, then the property falls to the surviving spouse and with it comes the responsibility to service the loan. In the event that death of your husband was wrongful, then you need to talk to a wrongful death attorney from Payer Law Group and have him claim the monetary damages that you have suffered as a result of the wrongful death.
To Keep or Not to Keep?
The decision on whether to keep the property after the death of a spouse is a matter of choice. Be it as it may, you need to make the decision as to whether you would like to keep the property or liquidate it. Please note that the lender is duty–bound to send you a letter alerting you that the reverse mortgage repayment has fallen due. Some may argue that this letter which comes soon after the death of the borrower is insensitive, especially considering that the surviving spouse is in mourning. However, the law is the law and the lender is required to do just that. So, you will need to communicate to the lender and state whether you would like to keep the property or sell it.
What Next? Call Our Wrongful Death Attorney
If you decide to keep the property, then you will be required to pay the loan balance. If you choose to sell the property to a third party, you will be entitled to keep the capital gains and only pay. Being a recourse loan, if the sale fails to yield enough money to repay the loan, the surviving spouse will not be liable for the additional money owed.
If the cause of death of your spouse was wrongful death, then do not hesitate to speak to a Payer Law Group’s wrongful death attorney. We have the expertise needed to ensure that you get compensated for your loss. Talk to us today.