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When and how is a Reverse Mortgage REpaid? 

A Reverse Mortgage may  become due and payable for any of the following reasons:

  • All of the Borrowers have died.

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  • All of the Borrowers have sold or conveyed title.

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  • The Property is no longer the primary residence of at least one Borrower.

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  • The Borrower fails to occupy, establish and use the Property as Borrower’s principal residence within 60 days after the execution of the Security Instrument on a Purchase transaction.

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  • No Borrower maintains the Property as a principal residence for a period exceeding 12 consecutive months because of physical or mental illness.

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  • The Borrower violates any other covenants of the Security Instruments and has refused or is unable to comply with the violated conditions of the Security Instruments.

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A Reverse Mortgage is paid off just like any other mortgage.  Proceeds from the home being sold or heirs choosing to refinance are used to pay off the Reverse Mortgage, if there are funds left over, the remaining amount will go to your estate. 

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