A reverse mortgage is a real estate loan, so it is possible to be foreclosed upon, but it is unlikely. With a forward mortgage, the house could be foreclosed if you default on your mortgage payments, but with a reverse mortgage there are no mortgage payments to fall behind on. The only way a foreclosure would happen is if the loan becomes due when the borrowers pass away or move out and the estate does not repay the loan in the given amount of time, or if the borrowers fail to pay their insurance premium and/or property taxes. Because one of the terms of the loan is that you have the right to stay in that house for the rest of your life, as long as you are abiding by your end of the terms there will not be a time when they would kick you out of the home in order to foreclose on the property.



In fact, reverse mortgages often save people from foreclosure. If you're over 62 years old and are facing foreclosure, chances are you have a substantial amount of equity in the house, which can be used to pay off your first mortgage with a reverse mortgage. Instead of fearing foreclosure and paying it off monthly, you will eliminate your mortgage altogether and start receiving monthly payments.


Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.