Will The Bank Own My Home?

If I take out a reverse mortgage loan, will the loan company own my McMinnville home?

Answer:

No. When you take out a reverse home mortgage, the title to your McMinnville Oregon property stays with you.

Once you move out, sell your property, or the last surviving borrower or eligible non-borrowing spouse passes away, you or your eOregon need to pay off the HECM home loan, but you will in no way have to pay over the appraisal value of the home.

The reverse loan balance will include the sum you have received in cash, along with the interest and fees which have been added to the loan balance each month. To repay the loan, you or your beneficiaries may need to sell the property.

Almost all reverse mortgages are Home Equity Conversion Mortgages (HECMs) in McMinnville Oregon. The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Like a conventional mortgage, with a HECM you’re borrowing money and utilizing your house as security for the reverse home loan. You must continuously pay for real eOregon taxes, homeowner’s insurance, and make repairs required to maintain your home or the financial institution can foreclose on the home. HECMs additionally require that you utilize the house as the principal residence.

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