What Happens When My Spouse Dies?

If my spouse dies or moves to a nursing home, what will happen with my reverse mortgage loan in West Linn Oregon?

Answer:

It depends on if you and your spouse are co-borrowers on the West Linn reverse mortgage loan, and when the loan was made.

The majority reverse mortgages that home owners in West Linn apply for are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Inside of the rules governing HECMs, if you are living with a spouse, it is a good option to make your spouse a co-borrower when you apply for a HECM should you both fulfill the eligible age of 62. If you are a co-borrower, you can keep living in the property even though your spouse passes away or moves into a elderly care facility. A surviving co-borrower also can get money from the reverse mortgage.

From time to time, only one of the spouses is listed as a borrower on the reverse mortgage. As an example, one spouse may not have been 62 yet, and would not have been qualified to be a HECM reverse mortgage borrower. In that scenario, what will happen to a surviving non-borrowing spouse depends the timing of when they got the West Linn Oregon HECM.

All HECM loans in West Linn Oregon with case numbers assigned on or after August 4, 2014, permit qualified non-borrowing spouses to remain in the house after the borrower passes away assuming they fulfill particular preliminary and ongoing specifications. To qualify as an “eligible non-borrowing spouse,” you have to:

Be married to the borrower during the time of the mortgage loan funding and remain married to the borrower for his/her lifetime;

Note: Should you marry the borrower AFTER he/she takes out a HECM, you won’t be eligible to stay in the home.

Be specifically identified as as a non-borrowing spouse in the HECM documents;
Occupy, and continue to inhabit the home as your primary residence; and
The borrower must certify at the time of the home loan closing, and every year afterwards, that you are his or her spouse; you are required to certify at the time of closing that you are an eligible non-borrowing spouse.

If you are a non-borrowing spouse, make sure your spouse mails the annual certification and also you observe all the requirements applicable to you so you can be allowed to remain in the property when the borrower passes away.

When you have fulfilled all of the requirements above, you as an eligible non-borrowing spouse could remain in the home when the borrower passes away if you:

Are capable of confirm legal ownership or receive the legal right to stay in the house (for example, a lease) within Ninety days of the borrower’s passing away.

Note: Make sure you meet this qualification while the borrowing spouse is still still living, due to the fact 90 days is a short time. You might speak to an attorney at law.

Satisfy the commitments of the mortgage loan to pay taxes and insurance and maintain the property.
Annually certify that you are the late borrower’s non-borrowing spouse, and inhabit the property, securing the mortgage loan as your primary residence.

Be aware that even though you may be allowed to stay in the home, you’re not allowed to have any cash from the reverse mortgage, including any cash remaining in a set-aside account established for the payment of property taxes and insurance protection.

To make sure you and your spouse fully understand these guidelines and meet these conditions, speak to your mortgage lender or servicer, a HUD counselor, or lawyer or attorney – they can help you to be ready should the borrower die before you.

If you are a non-borrowing spouse or partner in a property with a HECM which has a case number issued before August 4, 2014, you won’t be able to keep your West Linn Oregon home without paying back the loan except for when your mortgage lender or servicer chooses to apply to HUD to allow you to remain in the house after the borrower dies. It is advisable to speak to your mortgage lender or servicer to ask if they would get this endorsement for you. You together with the mortgage lender or servicer will have to meet a number of conditions within specified time frames, and HUD will need to say yes to your application.

If you believe you could be eligible for this benefit, not only should you get in touch with your mortgage provider or servicer, but also a hud approved counselor or perhaps law firm to help you with this procedure.