If funds are given under a reverse mortgage, how does the lending institution recover the money paid?
Answered on November 08, 2017
Once you vacate the premises permanently, or in the event of your death, the lending institution will give the first option to the legal heirs of the property to settle the loan. If they are unable to settle the loan, the lending institution will sell the property and, from its proceeds take its share-principal, i.e., the total amount disbursed as loan and the interest on it-and give the balance to the legal heirs.
