Who Owns Your Home With a Reverse Mortgage Loan?

Who Owns the Home? 

Taking out a reverse mortgage does not mean that the owner is selling their home or transferring ownership. A reverse mortgage allows borrowers to access a portion of their equity and convert it to cash. It’s a loan with some unique attributes, but the lender does not own the home. 

You, as the owner, retain the title on the property and the loan does not need to be repaid as long as you live up to the terms of the loan, which typically include: 

Paying property taxes 

Maintaining the home by keeping up with repairs 

Paying homeowner’s insurance 

Living in the home as your primary residence 

If the borrower doesn’t meet these requirements, the loan will be in default and the lender can foreclose on the property if the borrower doesn’t take action to correct the violation, just as with a traditional mortgage.