Delaware Mortgage Loans

Some of the most common misconceptions regarding getting a reverse mortgage are outlined below. Below are some false impressions – followed by reverse mortgage program facts.

“The borrower could owe more than the value of their home.”
Reverse mortgages are “non-recourse” loans, which means that the borrower, the borrower’s heirs, or the borrower’s estate can never owe more than the appraised market value of the home at loan maturity.

“The lender takes the title of the borrower’s home.”
A reverse mortgage is simply a lien against the property so the lender does not take the title of the home. The borrower will retain ownership of the property.

“The borrower can be evicted from their home.”
A reverse mortgage is not due and payable until the home is no longer occupied as the borrower’s primary residence. Even if the borrower has used up all of the funds available, they do not have to leave or sell the home. However, they are required to keep the home insured, pay the property taxes and maintain the home. Failure to meet these obligations could result in a default on the borrower’s loan and possibly even foreclosure or a tax sale.

If you need help with understanding if a reverse mortgage is right for you or need help obtaining a reverse mortgage, please feel free to contact me, John Thomas at 302-368-7132 or send me an e-mail to DelawareMortgages@yahoo.com.