Home Buying in Pleasanton>Question Details

bmbrbty, Home Buyer in Pleasanton, CA

how long after reverse mortgage ends andbank sells house do i have to move out?

Asked by bmbrbty, Pleasanton, CA Thu Feb 28, 2013

Help the community by answering this question:


A reverse mortgage only "ends" when both the borrower and spouse have died or permanently moved out of the residence. If the borrower dies but the spouse still lives in the home, the reverse mortgage remains in effect. The lender will generally allow between 90-180 days for the family to sell or refinance the home after all occupants have died or left the home permanently.
The bank is very understanding and flexible and will work with the family to allow them time to sell or refinance.
1 vote Thank Flag Link Thu Feb 28, 2013
The daughter cannot stay indefinitely. That would thwart the intent and purpose of a reverse mortgage. The reverse mortgage will need to be paid off by sale or refinance of the house unless the lender gives explicit approval for a different course of action.
0 votes Thank Flag Link Thu Mar 28, 2013
There's no problem for her remaining in the home while your estate is making efforts to refinance or sell.
Web Reference: http://www.allrmc.com
0 votes Thank Flag Link Sun Mar 24, 2013
what if its the daughter who is the surviving family member still living in the house after her fathers death?
0 votes Thank Flag Link Sat Mar 23, 2013
Generally 6 months to refinance the existing reverse mortgage into a conventional loan or 12 months if you are making efforts to sell the property. You'll need to stay in communication with your servicer and request extensions every 3 months. Staying in communication is the key :)
Web Reference: http://www.allrmc.com
0 votes Thank Flag Link Wed Mar 6, 2013
A reverse mortgage does not have a maturity so we are not sure what you mean by “ends” or what your status is. Are you a surviving spouse? Are you a relative? Are you a friend of the family?

Does the loan balance exceed the current market value of the house?

Good answers below but I think the best answer is the one that you will get by calling the customer service department of the lender who holds the mortgage.

Also, if you have the loan documents from when the loan was established you should be able to find the answer to your questions.
0 votes Thank Flag Link Sat Mar 2, 2013
Typically the bank does not sell the house the estate or the family of the estate sells the house (unless it was foreclosed on or possibly a short sale)
The terms of your move would be dictated by the contract that was used to sell the house so you would need to contact the listing agent or the person representing the bank to determine what was agreed to when the person selling the home entered into the contract of sale
Should you have further questions or concerns please don't hesitate to contact me or a real estate attorney to determine your rights as the occupant.
Good Luck,
0 votes Thank Flag Link Thu Feb 28, 2013
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