A reverse mortgage blog pointed out this week that there is one big area of confusion for many people who are getting reverse home mortgage loans today. That area of confusion is in regards to the fact that the reverse home mortgage loan stipulates that the home must be a primary residence of the borrower. The question is what happens if the homeowner has to go to a hospital or nursing home for an extended period of time.
The reverse mortgage blogs reports that the rule here is that you have one year to deal with this circumstance before the clause in the reverse mortgage loan terms will kick in. Someone who is in the hospital for six months may not technically be using the reverse home mortgage home as a primary residence at that time but as long as the person returns to that residence full-time before that year is up, there shouldn't be any problem.
Those people with reverse mortgages who do find themselves in this position should be aware of that one year clause. If it appears that the individual is going to need to be out of the home for care for longer than one year, it is wise to enlist the help of a finance professional knowledgeable about reverse mortgages to determine what options are available.
Question of the Day: What happens if you have a reverse mortgage loan but have to be out of that home for more than one year?
