For Family
I'm helping Mom or Dad.
If you're helping a parent think through their home and finances, you're not alone — this comes up often. Here are plain-language answers to the questions families ask most.
Does the bank own the home?
No. With a reverse mortgage, your parent continues to own the home. The lender places a lien against it, similar to a traditional mortgage, but ownership stays with the homeowner.
Can heirs keep the home?
Often, yes — typically by repaying or refinancing the loan balance after the borrower passes away or moves out permanently. The specifics depend on the loan and the family's circumstances, so this is worth discussing directly.
What happens when the borrower dies or moves out?
The loan becomes due. Heirs or the estate generally have options: repay the loan and keep the home, sell the home to repay the loan, or, in some cases, allow the lender to sell it. There are protections and timelines involved that a family should understand ahead of time.
Can the property be sold?
Yes — the homeowner (or their estate) can sell the home at any time. Any loan balance is repaid from the proceeds.
What responsibilities remain?
The homeowner remains responsible for property taxes, homeowners insurance, and reasonable upkeep of the home for as long as they live there.
Is counseling required?
Yes, for HECM (FHA-insured) reverse mortgages, HUD-approved counseling is required before closing — a safeguard specifically meant to help families understand the decision before it's made.
Good questions to ask together
- What are all the costs involved, and how are they paid?
- What happens to remaining equity, if any?
- What are the responsibilities that continue after closing?
- What alternatives should we consider first?
Reverse Mortgage Disclosure
A reverse mortgage is a loan that must be repaid, typically when the borrower sells the home, permanently moves out, or passes away. Borrowers remain responsible for property taxes, homeowners insurance, and home maintenance. HUD-approved counseling is required for HECM (FHA-insured) reverse mortgages. This is general education, not individual advice — talk with Dawn about your specific situation.
Bring your questions to Dawn
These are general answers. Every family's situation is different — Dawn is glad to talk it through with you and your parent.