Does the Bank own my home

If I take out a reverse mortgage, does the bank or lender own my home?  This is one of the most common questions borrowers ask when considering a reverse mortgage.   NO!  When you take out a reverse mortgage, the title to your home remains with the you.  Most reverse mortgages are Home Equity Conversion mortgages (HECMs).  FHA, which is a part of the Department of Housing and Urban Development insures the HECMs.  Just like a traditional mortgage, with a HECM you are borrowing money and using your home as security for the loan. But unlike a traditional mortgage, you do not have to make monthly payments on the loan.  As with a traditional mortgage, the borrower must continue to pay taxes and insurance and make repairs to maintain the home, or the lender can foreclose on the home.  The reverse mortgage (HECMs) require that the borrower use the home as their principal residence.

If you move out, sell the home, or the last surviving borrower or eligible non-borrowing spouse dies, you or your estate will need to repay the HECM loan.  You nor your heirs will never owe more than the value of the house.

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