Reverse Mortgages


Reverse Mortgages ~ What Happens When My Reverse Mortgage is Due? - Part 6

There are several main questions asked regarding the end of a reverse mortgage loan. These questions are;

  1. What happens if I owe more than my house is worth?

  2. How long will my reverse mortgage last?

  3. What will I owe when my mortgage is due?

  4. What happens if I have to leave my home?

  5. What happens when I pass my home to my heirs?

The answers here will be accurate but will not go into extreme detail. There are many variables and scenarios, and such situations can be evaluated on a case-by-case basis.

Reverse MortgageQ. What happens if I owe more than my house is worth?

A. If a reverse mortgage is utilized for a period of time where the homeowner owes more than the value of the home, they need not fear. The mortgage insurance that is required on a reverse mortgage (HECM) is insurance for just such a case. When the home is sold, only what the home is sold for at a fair market value will be required. In addition to that, Realtor costs and the costs of sale will also be backed out of the equation. So the short answer is, if you owe more than the value of the home, the difference is forgiven! (Further explanation below).

Q. How long will my reverse mortgage last?

A. As long as the home owner lives in the home. If the home owner passes away or if they are required to live at another place full time, than one would be required to refinance or sell the home. Reverse mortgages are only for owner-occupied homes. Likewise, if the property is passed to the heirs, than they would be require to refinance or sell the property.

Q. What will I owe when my mortgage is due?

A. This was partially answered above. First, in a normal scenario, you subtract the cost of sales and the current reverse mortgage balance to see what your net proceeds are; just like in a normal mortgage/ home sale scenario. But to reiterate when you sell the property, and more is owed than the sales price, one will only owe the;

Sales Price (-) Settlement Costs (-) amount of reverse mortgage owed only up to the remaining amount left.

For Example: If you sell your home for $200,000, but $250,000 is owed on the reverse mortgage and the cost of sale is $10,000, than the equation would look like this:

$200,000 (-) $10,000 = $190,000. YOU WOULD ONLY OWE $190,000.  You would walk away with $0, and the $60,000 would be forgiven. 


Stay tuned for more information regarding a reverse mortgage.

If you need immediate assistance regarding a reverse mortgage, feel free to contact Steve Kappre at 856-419-3561.



  1. Reverse Mortgages ~ Who is Eligible? - Part 1
  2. Reverse Mortgages ~ Payment Options - Part 2
  3. Reverse Mortgages ~ Expected Costs, Appraisals, and Title - Part 3
  4. Reverse Mortgages ~ Counseling - Part 4
  5. Reverse Mortgages ~ Is Reverse Mortgage Income Taxable? - Part 5
  6. Reverse Mortgages ~ What Happens When My Reverse Mortgage is Due? - Part 6
  7. Reverse Mortgages ~ Purchase a Home with a Reverse Mortgage - Part 7



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Steve Kappre is a Certified Mortgage Planner with Treasury Mortgage, a subsidiary of Aurora Financial Group, serving all 50 states, focusing on Gloucester, Camden, and Salem County, NJ. Steve specializes in;

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at

Comment balloon 6 commentsStephen Kappre • January 25 2009 02:56PM


This is the best information on reverse mortgages that I've seen. Your series is absolutely comprehensive. GREAT JOB! ~GBU~

Posted by Elizabeth Nieves, Bilingual Raleigh - Durham North Carolina Real Estate Team (The Elizabeth Nieves Realty Group) almost 12 years ago

Steve, I agree with Elizabeth. Your info is right on the money! Thanks.

Posted by Tony Orefice, Realtor/Harrisburg NC,Concord NC (Wilkinson ERA/ almost 12 years ago

Steve, this is a great series for Seniors.  I'm not quite there yet, but it's useful info nonetheless.

Posted by Heather Goodwin, Coldwell Banker Gosslee (Licensed by the Louisiana Real Estate Commission) almost 12 years ago

Elizabeth, Tony, and Heather - thank you for the kind words. So many questions come with reverse mortgages, and this seems like one of the best ways to get the truth out :)

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 12 years ago

Great series Steve.  Reverse Mortgages can be great but they need to be understood before entered into.

Posted by Paddy (Patricia) Pizappi, Real Estate Associate Broker Hudson Valley NY (Better Homes and Gardens Rand Realty) almost 12 years ago
GhyQxK Wow! That's a really neat answer!
Posted by Gerry almost 10 years ago

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