Unfortunately, reverse mortgages cannot be simply transferred from one borrower to a family member. However, there are a few options available for family members who wish to keep the home after the borrower has moved out or passed away. Here are some options to consider:
Refinancing the Reverse Mortgage: If the family member wishes to keep the home, they can refinance the reverse mortgage into a traditional mortgage in their name. This option will allow them to continue making payments on the home and keep it in the family.
Repaying the Reverse Mortgage: Another option is for the family member to repay the reverse mortgage using their own funds or taking out a traditional mortgage. This will allow them to keep the home and retain ownership.
Selling the Home: If the family member decides that they do not want to keep the home, they can sell it and use the proceeds to repay the reverse mortgage loan. If the home is sold for more than the loan amount, the family member will receive the difference.
While the inability to transfer a reverse mortgage to a family member may seem like a setback, it’s important to remember that there are still several options available for those who wish to keep the home in the family. It’s important to speak with a financial advisor or mortgage professional to determine the best course of action based on individual circumstances.