How to Pay Back a Reverse Mortgage

Video Transcript

"Hi, my name is Bob Dixon, and I am known as Mr. Reverse Mortgage. I'm a former HUD Agency Counselor, and I've seen practically every type of reverse mortgage that there is in the U.S.A. Now, the question today is how to pay back a reverse mortgage. Now, there's two answers to that. The simple one is you call the agency that's handling the reverse mortgage, the paperwork, and you ask them what the payoff is and pay that amount and that takes care of it. But, let's say that you're handling this for an estate. A family member's passed away and you're, want to wrap that up. Now, you have up to a year to make a decision on how you want to handle the reverse mortgage. You can either pay it off yourself and take over the property, or you can pay it off and any excess capital goes to the estate. So, you'd have an appraisal done; find out if there's excess capital. Then, sell it the same way you'd sell any other property; call a real estate agent or sell it yourself. And then, pay the loan back and the excess would go to the family or the estate. Now, if by chance, with declining properties right now, if the value had gone down and you owed more than the the the property is worth you'd simply turn over the keys to the mortgage company, and that would be their problem to take care of. This is a non-recourse note so you, the family, or the estate can never owe more than the property is worth. Again, my name is Bob Dixon, and I'm Mr. Reverse Mortgage. Thank you."