Reverse Mortgage After;
Things you must do after taking a Utah Reverse Mortgage.
For a Utah Reverse Mortgage, you must:
"Use your home as your principal residence". If you decide to move, then you can sell the home, pay off the remaining debt, and take whatever equity remains and purchase a new home. If you do move and purchase another home, you can take a reverse mortgage on that home if it is wholly owned. If you do not use the home as your principal residence, the lender can have it sold to repay the debt. This clause prevents people from taking out multiple reverse mortgages on multiple properties.
"Maintain the condition of the house". At the time of lending, the home has a certain value. If you do not maintain the condition of the house, the value drops and that affects the lender (the lender's collateral gets devalued).
"Pay all property taxes due". When the lender extends the Utah reverse mortgage, the lender puts a lien on the property. If the taxes are not paid, then the government can seize the property for back taxes. If that happens, the collateral for the loan disappears and the lender is left holding an empty bag. It is in the lenders' interest (and yours) to have all taxes due on the property paid in a timely manner. If the taxes are not paid, the lender may take possession of the property to pay the taxes. If this happens, the lender also recoups the balance of the debt and you receive the remainder.
"Keep all insurance current". This is part of the lending contract of a Utah reverse mortgage. If the insurance lapsed and something disastrous should happen, the lender loses the collateral — this is why the insurance has to be kept current. The lender will never specify which carrier to use, but the insurance does have to be kept at a sufficient level.
To Recap a Reverse Mortgage in Utah you must "Use your home as your principal residence", "Maintain the condition your home", "Pay all property taxes due", and "Keep all property insurance current".
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More Utah Reverse Mortgage Loan Information:
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