A reverse mortgage is an ideal financial product for senior citizens because it provides them with a stream of income which is based off the equity they have in their homes. While it can be a great product, there are situations where a senior citizen could have their home taken.
You Move Out of Your Home
The first where your home can be taken from you if you have a reverse mortgage is if you move out of your home. A reverse mortgage loan must be secured by your primary residence. If you move out of your home and into a nursing facility or another home, then you are required to pay back the reverse mortgage. If you cannot sell your home, the reverse mortgage lender may foreclose your home and sell it at auction
You Don’t Pay Your Taxes
Another situation where your home can be taken from you if you have a reverse mortgage is if you don’t pay your property taxes. Depending on the location of your home, your taxing authority will begin to place liens on your home if taxes are more than 6 months delinquent. If you continue to not pay your property taxes, you run the risk that the Treasury Department of your city will seize your home and sell the home to pay back all back taxes.
Your Heirs Can’t Sell Your Home
The last situation where your home can be taken from you if you have a reverse mortgage is if your heirs can’t sell your home after your death. This is why it is advisable to look for a reliable firm like Fairway Independent Mortgage in Colorado. If your heirs are not able to sell your home or repay the reverse mortgage loan balance after your death, then they run the risk of having your home foreclosed.