Hecm Reverse Mortgage Affect My Heirs

How Will an HECM Reverse Mortgage Affect my Heirs?

During the process of researching and getting informed about retirement planning options, it is common for retirees and seniors to be curious about the value of reverse mortgages. Many seniors see the inherent value in a loan that gives them access to the equity they have built up in their homes, but still wonder how a HECM reverse mortgage will affect their heirs.

At Citizens Lending Group, we advocate education about all the facts of a reverse mortgage and we strongly encourage seniors and their family’s to get informed. We have designed this page to give you information on how a HECM reverse mortgage affects both you and your heirs’ financial situations. In California, contact us today to learn more about reverse mortgage requirements and how an HECM loan may factor into your retirement planning process.

HECM Reverse Mortgages & Your Family

To begin answering any questions about how a reverse mortgage affects your family, it is helpful to understand the key points of a reverse mortgage. When you know all about reverse mortgages you will be better equipped to understand which parts affect your family.

For seniors whose retirement planning did not provide enough money to cover unexpected expenses, a HECM reverse mortgage can be a great option. It allows your family to live in peace knowing that you have the resources you need to care for yourself and be around for them. These loans work by giving you access to the equity you have built up in your home throughout the years, without requiring a monthly payment. It is a great way to remain financially stable and independent without going into debt.

To repay a HECM reverse mortgage typically you are expected to sell your home when the last borrower no longer lives there. This is the part where many begin to worry. They may be concerned that their heirs will be left repaying the loans as their house could lose value and the selling price might not be enough to cover the full costs of the loan. Fortunately, these loans are regulated so that anything greater than the value of your home at the time of sale is paid by the lender’s insurance, not your heirs. You can rest assured that a HECM reverse mortgage will not leave your family in debt.

On the other hand, many families have a strong emotional attachment to their homes and so selling may not be the preferred course of action when it comes time to repay the loan. Fortunately, your family can repay the HECM reverse mortgage using other funds and without selling the home if they choose. This means that your heirs can keep the home in the family.


Contact Us to Learn About Other Ways an HECM Reverse Mortgage Affects Your Family

A HECM reverse mortgage can be a valuable asset in managing retirement if you know and understand the risks and benefits to your heirs. In California, contact Citizens Lending Group today to learn more about reverse mortgage requirements and how to properly use this loan to live a full life without leaving debt for your heirs.

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These materials are not from HUD or FHA and were not approved by HUD or a government agency.