Renting a home that has a Reverse Mortgage?
I have friends that have been renting a home that they just found out has a reverse mortgage on it. The woman was put into a nursing home and the family is renting it out. Is it illegal to rent a home that has a reverse mortgage. If so, who would get into trouble?
Frank posted: 02 Sep at 7:31 am
It is completely legal. Once the bank takes posession, the family can’t keep renting it out, but that may not be for a very long time.
jojoming posted: 02 Sep at 8:23 am
In Australia most reverse mortgages have clauses that the bank doesn’t have any right to sell the property unless the owner passes away. For this reason it is quite safe. It is highly unlikely that your friend will have any problems.
Jeff Yue posted: 02 Sep at 8:47 am
Interesting question. I’d assume different states have different regulations regarding this issue also. I’ve found that many friends have found relevant information at BestReverseMortgage.com, a blog seemingly dedicated to all things reverse mortgage. I’d recommend checking that out too.