YOU HAVE A REVERSE MORTGAGE: KNOW YOUR RIGHTS AND RESPONSIBILITIES14
For reverse mortgages originated on or after August 4, 2014
Your lender or servicer will determine if your non-borrowing spouse qualies
to stay in the home after you, the borrower, move into a healthcare facility for
more than 12 consecutive months or pass away (called a “deferral period”). To
qualify as an Eligible Non-Borrowing Spouse, your spouse must:
§ Have been married to you at the time the loan documents were signed, and
stay married to you up until your death. For couples who were unable to
be legally married based on gender at the time the reverse mortgage loan
was made, they must show that they were legally married by the time of the
borrower’s death.
§ Have been identied in the loan documents as a non-borrowing spouse.
§ Have lived, and continue to live, in the home as their principal residence even
after you move into a healthcare facility for more than 12 consecutive months
or pass away.
§ Continue to meet the loan requirements and make sure the loan does not
become due and payable for any other reason.
For reverse mortgages originated before August 4, 2014
As explained in more detail below, after you, the borrower, move into a
healthcare facility for more than more than 12 consecutive months or pass
away, your lender or servicer can choose to either:
§ Foreclose on the home, or
§ Enter a process called “Mortgage Optional Election (MOE) Assignment” that
allows an Eligible Non-Borrowing Spouse to stay in the home.