What are the terms of the reverse mortgage?
Reverse mortgage’s differ from a regular mortgage because the balance is not paid back for the lifetime of the individual or surviving spouse, until the house is sold, or until the individual is no longer able to live independently and moves into assisted living or another such program. Subsequent to permanently leaving the house, individuals have up to a year to satisfy the outstanding balance and in many cases extensions above the year period can be granted. Most lenders are very cooperative in giving extensions and aiding individuals in paying back the outstanding balances. If the balance is paid back upon the sale of the house and the sale is for more than the remaining balance, the excess will go back to the individual or to their estate.
