One of the biggest myths about the reverse mortgage loan is that it means you are signing over your home to the bank. That's not true at all; the home stays in your name and remains your property until you choose to move or ultimately pass away. For most people considering a reverse home mortgage, this information is a relief. However, there is also a negative aspect of this that you should take into consideration.
As was pointed out in a recent article covering the pros and cons of reverse mortgage loans, this fact means that you are the one that remains responsible for your home. The property taxes that are owed each year are your responsibility. The insurance that is required to keep the home safe is up to you to purchase and pay for. The homeowner's fees that are associated with your area or neighborhood must still be paid by you. It was also noted in that article that your failure to continue to keep up these payments could ultimately mean the loss of the reverse mortgage loan or even the loss of the home.
Ultimately, it's a good thing that you're not giving away your home when you take out a reverse mortgage loan. And you can even use money from the home to pay for these types of fees which can relieve a great financial burden to many homeowners. But you do need to bear in mind that this means that you continue to have responsibility for your home and that you need to take that responsibility seriously.
Question of the Day: What other home owner responsibilities can you think of which don't go away just because you get reverse mortgage home loan assistance?
