EMAIL FRIEND Setting the Record Straight Reverse Mortgage Misconceptions You May Have Read or Heard MISCONCEPTION #3 - WHEN THE LOAN BECOMES DUE, THE LENDER WILL SELL MY HOME. The homeowner will always retain title to his/her home. The loan becomes due when all homeowners no longer live in the home permanently. At that time, the homeowner or the heirs can either sell or obtain a forward mortgage to refinance the reverse mortgage in order to repay the loan. While it's common for the borrower or heirs to sell the home to repay the loan, it's a decision that they make, NOT THE LENDER. Lenders earn their income by helping you keep your home and meet whatever financial needs you may have in order to help you maintain financial independence. Reverse Mortgage borrowers may remain in the home for as long as they wish. However, should they decide to sell the home for any reason, the loan would then become due and payable just like any other mortgage. Related Links: The lender or bank will take my home We will have nothing to leave our children? There are strict credit and income requirements You cannot have an existing mortgage on your home When the loan comes due you may owe more than the home is worth My Social Security and Medicare benefits will be affected There are restrictions on how the money is used We will have to make monthly payments We will have to pay taxes on the funds received The lender may require immediate repayment A reverse mortgage is similar to a home equity loan Reverse mortgages are predatory It's difficult to qualify for a reverse mortgage Reverse mortgages are prohibitively expensive A reverse mortgage is only for those in desperate need and/or as a last resort Reverse mortgages are not safe Other misrepresentations you may have heard For more information [ PRIVACY POLICY ]     [ TERMS OF USE ]