Can you get a reverse mortgage without your spouse?
To qualify for a reverse mortgage, you have to be at least 62 years old. But if you’re old enough and your spouse is not, you can still take the loan by having your partner file as a “non-borrowing spouse.”
What happens with a reverse mortgage in a divorce?
In the case where a couple who has a reverse mortgage together decides to get a divorce, they must submit the divorce decree to the loan servicer. At that point, one of the spouses will be permitted to be removed from the home title, keeping the loan in the remaining spouse’s name.
How do you get a divorce with a mortgage?
If you divorce and both your names are on the mortgage of your home, you and your ex-spouse must both continue making mortgage repayments until you reach a financial settlement.
Can a spouse who has a reverse mortgage stay in the home?
For existing non-borrowing spouses: If you took out a reverse mortgage loan before August 4, 2014 and you were married at the time to someone not named on the reverse mortgage, that spouse may be able to remain in the home even after the borrower dies, depending on circumstances.
When do heirs have to pay off reverse mortgage?
Some heirs may lack funds to pay off the loan balance, and may need to sell the home in order to repay the reverse mortgage loan. With a reverse mortgage loan, if the balance is more than the home is worth, your heirs don’t have to pay the difference.
Who is responsible for the reverse mortgage balance?
Are heirs responsible for the reverse mortgage balance? Heirs inherit the property will need to repay the outstanding reverse mortgage balance by either refinancing into a traditional loan of their own, or by selling the home within 12 months. Any remaining equity in the property will belong to the heirs.
What happens if only your spouse is on the mortgage?
A refinance is where you get an entirely new loan for your home, and you would apply for the loan as a couple. If only your spouse is on the mortgage, are you automatically on the title?
