Ask Terry Questions reverse mortgage on death of a spouse

reverse mortgage on death of a spouse

By Terry Savage on September 26, 2015 | Housing / Real Estate

we have a reverse mortgage…I am 65 plus…wife is under 65, If I pass does she get to keep the house even though she is under 62?

Terry Says:  Only recently because of a court case, have the rules changed for RMs taken out his/her principal residence, with a non-borrowing spouse. HUD now accepts assignment of those mortgage and has issued the following rules — and the details are important:

According to a release from HUD, following the death of their borrowing spouse, non-borrowing spouses may remain in their home if they meet all other terms and conditions of the original mortgage contract and under the following conditions:

  • The lender or servicer agrees
  • The reverse mortgage was assigned an FHA case number prior to August 4, 2014
  • They are current in making timely tax and insurance payments
  • They maintain the property under the terms and conditions of the HECM
  • They were legally married to the borrowing spouse at the time of the loan closing, or they were engaged in a committed same-sex relationship with the borrower akin to marriage but were prohibited under state law from legally marrying the borrower at the time of the loan’s origination, but became legally married prior to the death of the borrower
  • They currently reside and resided in the property as his/her principal residence at the origination of the HECM and throughout the duration of the HECM borrower’s life
  • They have, or are able to obtain, within 90 days following the last surviving borrower’s death, good, marketable title to the property or a legal right to remain in the property for life

Go to for more details.



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