Reverse Mortgage Asset Protection

Reverse mortgages have many safegaurds built in to protect seniors. One of the key safegaurds of a reverse mortgage is through asset protection.

Asset Protection. The HECM is a “non-recourse” loan. This means that the amount due can never exceed what the home is worth. Title to the home always remains with the borrower. When the loan becomes due, the lender is repaid the sum of funds advanced plus the accrued interest, but never more than the value of the house. If there is remaining value, it belongs to the homeowner or the estate.

This is just one of the many safeguards associated with reverse mortgages. If you have any questions or need a better explanation of what "non-recourse" mean, please post here or email me.