What Happens If I Move Out of My Home?

What occurs should I need to move out of my West Linn house into a care house, or even to stay with family, and I have a reverse mortgage?

Answer:

For those who have a reverse mortgage and you no longer live in your West Linn Oregon house for the vast majority of the year, or maybe you will need to move out of your house for health related factors for greater than 12 sequential months, you may have to pay back the reverse mortgage loan, that may result in selling your property in West Linn Oregon

Nearly all reverse mortgages funded in West Linn are House Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a division of Department of Housing and Urban Development (HUD), insures HECMs. A HECM loan have to be repaid entirely once the last surviving borrower or eligible non-borrowing wife or husband passes away or completely moves out of the property.

Any situation during which you’ve resided someplace else for the majority of the year, or for more than 12 consecutive months for health related reasons – including a care home or assisted living care home facility – will be viewed as a “permanent move.”

So what would this mean in practice? Use this checklist to look up your circumstances:

Should you be the only borrower on the HECM and:

You are living on your own in West Linn Oregon, the loan must be paid back if you move some other place for a most of the year, or to a care home or assisted living care home facility for over 12 sequential months. This may involve selling your home to pay back the mortgage.

You live with a spouse, the loan will have to be repaid if you move someplace else for the most of the year, or to a care home or assisted living care home home in excess of 12 sequential months.

Caution: This is going to most likely require selling your house, and your husband or wife will likely have to move.

You reside with children, other family members or unrelated room mates, your mortgage will have to be paid back if you move someplace else for the majority of the year, or to a care home or assisted living care home for longer than 12 sequential months.

Warning: This can require selling your property, and your children, relatives or roommates will in all probability need to move.

If you are a co-borrower on the HECM reverse mortgage in West Linn Oregon and:

You live alone because your co-borrower has passed on or currently resides somewhere else, the loan has to be paid off in the event you move someplace else for the majority of the year, or to a care home or assisted living care home for over 12 consecutive months.

You reside with a husband or wife who is a co-borrower on the reverse mortgage, your co-borrower can continue to reside in the house when you move someplace else for the most of the year, or to a nursing home or assisted living care home. But if your co-borrower needs to leave too, either because she or he no longer lives in the home for the majority of the year or for longer than 12 consecutive months because of health related reasons, your loan will need to be repaid.

You live with other family or unrelated roommates. If the co-borrower still resides in the property, your other family or roommates may live there too once you move to a elderly care or assisted living facility. But, if your co-borrower also no longer lives in the home for the most of the year or for longer than 12 sequential months due to healthcare causes, your loan will need to be paid off.

Caution: This will almost certainly require selling the house, and your relatives or roommates will probably need to move.

Generally, co-borrowers are husbands and wives or partners.

Co-borrowers are handled the exact same regardless of whether they are spouses, partners, relatives or just roommates.

The majority of borrowers in West Linn Oregon will need to sell their property so that you can repay the reverse mortgage. With an FHA-insured HECM loan, if the mortgage balance is more than your property is valued, you don’t have to pay the excess. After you sell the property, the mortgage lender will take the proceeds from the sale as payment on the loan, and the FHA insurance covers any outstanding mortgage loan balance.

If you would like to keep your home instead of selling it, the loan must be paid off with another source of funds. But you won’t have to pay more than the full loan balance or 95 percent of the home’s appraised value, whichever is less.