Reverse mortgage myth: You will have to pay the full balance of the loan if your home’s value decreases. FACT: The HECM loan is a “non-recourse” loan. If you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home may be used to repay the debt. If your heirs choose to keep the home instead of selling, they will be responsible for repaying the balance of the loan in full.
Posted on: Mon, 02 Dec 2013 13:23:00 +0000