Termination of Texas Reverse Mortgages!
The Texas reverse mortgage becomes due and payable when you no longer occupy the home as your primary residence. This could be due to death, illness, or a move to a new home. If you have a joint Texas reverse mortgage (i.e., husband and wife), the loan is not due until the last surviving borrower permanently leaves the residence. Under the reverse mortgage program, your reverse mortgage lender may require payment of the outstanding loan balance if one of the following takes place: 1. The last surviving borrower has passed away; 2. All borrowers sold or transferred the title to the property; 3. The property is no longer the primary residence of at least one borrower; 4. One of the borrowers has not occupied the property for a period of over 1 year due to physical or mental illness; 5. The property requires repairs, and the borrower does not comply; and/or 6. Taxes and insurance have not been paid. (Several of the above items are also general requirements, or “conditions of default” with traditional mortgages.) In the event of an illness that requires the last surviving homeowner to permanently change residential locations, the home is no longer considered the primary residence. If this scenario occurs, the Texas reverse mortgage loan will be due. If you allow your property to deteriorate beyond normal and reasonable wear and tear, you will be required to correct the problem. These repairs can range from such issues as a leaky roof to termite damage. If you do not correct the problem in a timely manner, your reverse mortgage loan will be due. Since you can never owe more than the value of your home, this deterioration will decrease the value of your property and could cause the lender to lose money. As with a traditional mortgage, you are required to pay your property taxes, hazard insurance, and, if necessary, flood insurance. If you fail to pay these fees, you will be in violation of your reverse mortgage agreement and the loan can become due. Your reverse mortgage lender may also refuse to provide additional extensions of credit if: 1. The outstanding balance on your line of credit reaches the credit limit (principal limit); 2. The lender has notified you of termination for one of the six reasons previously listed; 3. A petition for bankruptcy has been filed by or against you; or 4. You have paid your outstanding balance in full. Certain issues may also affect the security of your loan. Your Texas reverse mortgage may become due and payable if you: 1. Rent your home, 2. Add a new owner to the title, 3. Change your home’s zoning classification, or 4. Acquire new debt against your home.More Texas Reverse Mortgage Information:
Texas Reverse Mortgage Loan, Top 3 Questions | Ways to Get Paid on Your Texas Reverse Mortgage | Texas Reverse Mortgage Loan Qualifications and Information | Features of a Texas Reverse Mortgage | Termination of Texas Reverse Mortgages