When you look at one of the many types of reverse mortgage loans you will inevitably want to know what happens in the event you pass away or move out of the home for that matter? This is one of the many reverse mortgages pros and cons, so let’s take a closer look.
Every reverse mortgage will require repayment in the event you pass away or permanently move out of the home. Your heirs will need to repay the loan amount owed on the home. But they do have some options here to get the loan paid back.
One, they can simply pay off the loan and then keep the house free and clear. Or, they can refinance the loan and make regular monthly payments just as you would with any other home mortgage. Finally, they could put the house up for sale and use the proceeds to pay off the loan balance. If it is not enough to cover the loan balance, they would need to get funds from other sources to pay it all off.