Question:
“My father passed away and left his house to me and my sister. She wants to move in and keep the house. But isn’t there some rule where you have to pay off the loan when the owner dies or moves out?”
Answer:
If available, you should read the loan documents and/or call the bank and ask them.
I’m not a reverse mortgage expert, but I believe that the typical requirement is that the loan must be paid off (via refi or sale) within one year of when the borrower moves out or the last borrower dies.
If it’s not paid off, then the bank begins foreclosure.
So be sure you find out the rules for your situation and take action early, allowing extra time in case there are sale or refinance delays.
