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Reverse Mortgage Myths

The Bank DOES NOT sell the home!

Sorting through the myriad of myths that plague the reverse mortgage program is an integral part of the education process. You may have heard some of these widespread misconceptions that are often spread by "sidewalk counselors".

The second biggest myth you will encounter (after the bank owns the home) is that the bank sells the home for you and retains any equity left in the home.

You (or your heirs) are in Control

This myth is closely related to the Bank Owns the Home. The misconception is that when the loan becomes due, the bank sells the home for the borrowers. This myth would also have you believe that the bank keeps all remaining equity from the sale of the home.

With a reverse mortgage, you (or your heirs) are in control of the home, the same as with a forward mortgage. You are free to sell your home if you choose to do so.

When the reverse mortgage becomes due (none of the borrowers no longer live in the home), either you (if you have moved) or your heirs can choose to 1) payoff the loan, or 2) sell the home to satisfy the lien.

When the home is sold, all equity left after paying off the reverse mortgage lien belongs to you or your heirs.

The Bank Does Not Sell Your Home

Image - The Bank does not sell your home when you have a HECM Reverse Mortgage
 
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Who Owns the Home?
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When is the Loan Due?
A Non-Recourse Loan
It's Your Money
HECM for Purchase

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First Federal
Savings Bank
NMLS 402963
1880 S Eagle Rd
Meridian, ID 83642

dcook@bankfirstfed.com
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Home | HECM Basics | 12 Facts | Borrower Qualifications | Loan Process | Financial Assessment
Who Owns the Home? | Who Owns the Equity? | When is the Loan Due? | A Non-Recourse Loan | It's Your Money
| HECM for Purchase |
Copyright© 2019 Doug Cook FDIC & Equal Housing Lender Logo
HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home. Rates and fees vary by lender. All credit products subject to approval. Information presented was not created or approved by HUD/FHA.
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First Federal Savings Bank | 1880 S Eagle Rd | Meridian, ID 83642
Institution NMLS: 402963

www.MortgageFirstFed.com/dcook
www.BankFirstFed.com

First Federal Savings Bank provides HECM Reverse Mortgage lending in the states of
Idaho, Oregon, Washington, Montana, Wyoming, Utah and Nevada.
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