What happens to a reverse mortgage when the last surviving borrower moves to a nursing home permanently?
Correct Answer
B) The borrower has 12 months to return to the home or the loan becomes due
Under HUD guidelines for HECM reverse mortgages, when a borrower moves out of the home for more than 12 consecutive months (such as to a nursing home), the loan becomes due and payable. This 12-month period allows for temporary absences while ensuring the home remains the borrower's principal residence.
Why This Is the Correct Answer
Under HUD guidelines for HECM reverse mortgages, when a borrower moves out of the home for more than 12 consecutive months (such as to a nursing home), the loan becomes due and payable. This 12-month period allows for temporary absences while ensuring the home remains the borrower's principal residence.
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