Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

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Preparing for the Inevitable: What Your Heirs Need to Know About a Reverse Mortgage
Retirement Planning, Retirement Tips

Preparing for the Inevitable: What Your Heirs Need to Know About a Reverse Mortgage

When you take out a reverse mortgage loan, there’s a good chance you intend to live in that home for life. But what happens next?

If your surviving spouse is a co-borrower or qualified non-borrowing spouse, he or she can continue to live in the home for their lifetime. But eventually, the time will come when your heirs will be left to settle the loan, and they should know your plans and have the resources they need to put those plans into action. That’s why it’s so important to keep them in the loop now, leaving no questions unanswered.

Here’s a quick overview of what to discuss, so you’re all on the same page:

An heir’s rights and legal obligations

When a reverse mortgage loan holder passes away, the loan becomes due and payable. A loan servicer will mail a notice including the current balance owed, payback options and a timeline for responding. The loan servicer can initiate foreclosure as required by federal regulation if the notice is not responded to within 30 days.

While payment is due immediately, your estate may have up to 12 months (an initial six-month period, plus two ninety-day extensions) to satisfy the debt if all requirements and criteria for loss mitigation postponements are satisfied by a legal representative of the estate. But remember, it’s in your heirs’ best interests to pay it off as quickly as possible. Interest on the balance, as well as monthly insurance premiums, will continue to accrue until the loan is settled.

If your heirs are actively working to sell or refinance the property beyond the due date, they are entitled to request two ninety-day extensions beyond the initial six-month period to attempt to satisfy the loan. Extensions require specific documentation be submitted to HUD to substantiate the request and are not guaranteed. The loan servicer can assist your heirs in this process.

Heirs may also sell the property or purchase it for 95% of the appraised amount. Because reverse mortgages are nonrecourse loans, when the home is sold, your heirs will not owe more than the current appraised value.

For example, if the appraised value of the property is $450,000, and the loan balance is $500,000 at the time of the sale, they are only obligated to pay off no more than $450,000.

Planning is key

Just as you want to talk over your plans with your heirs for when the loan is due and payable, you should also work closely with your servicer to communicate your intentions regarding your home and how your estate plans to handle the mortgage whenever the time comes. When everyone is aware of your wishes, they can work together to ensure they are carried out.

Reverse Mortgage Funding, LLC (RMF) has assisted thousands of Americans in leveraging the power of their home equity as a powerful financial tool. To find out how a reverse mortgage can help you free up funds for a comfortable retirement, call 888-277-1567 today. An experienced reverse mortgage specialist will set up with a convenient in-person appointment in your area.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 5-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

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A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

Equity Elite Reverse Mortgage

Put Your Home Equity to Work for You

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By clicking "CALCULATE", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged and are representing that you are the regular user of provided number. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-1567 to complete your request. You understand that you can revoke this consent at any time.

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