Legal Disclosure

A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). Reverse America works with other lenders and financial institutions that offer reverse mortgages. To process your request for a reverse mortgage, Reverse America may forward your contact information to such lenders for your consideration of reverse mortgage programs that they offer.

When the loan is due and payable, some or all of the equity in the property no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The Lenders charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Interest is not tax-deductible until the loan is partially or fully repaid.

Borrowers are responsible for paying property taxes, homeowner’s insurance, hoa, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. When this happens, some or all of the equity in the property no longer belongs to the borrower, who may need to sell the home or otherwise repay the loan balance.