My Mother has a reverse mortgage on her home. How long can the house be occupied after she passes?

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My sister cares for my mother full time so she has no income except for the small amount we give her monthly. Does anyone know about how long she can continue to live in my the house after my mother passes. We have all agreed to keep my mom in her home and care for her ourselves. My sister will need time to find work and get on her feet.

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Depends who the RM is with. Some lenders are particularly vicious, especially with a desireable property. I would even go so far as to ask a lawyer to read the contract.
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With the older Reverse Mortgages [originated prior to August 2014], one usually has 30-60 days to give the bank notice on what you plan to do with the house.... refinance to pay off the "loan" plus interest and fees on that loan.

If you choose the selling option, the house has to be listed at market value in order to sell quickly, and one can continue to stay in the house until it is sold.

Mine you, some Reverse Mortgage holders will hound you weekly to find out why the house isn't selling. You will need to find out how long you have to keep the house on the market before it goes into foreclosure.

There are pros and cons to Reverse Mortgages... this is one of the speed bumps with using this type of a loan. Plus if an elder is still around but goes into a nursing home, after one year the house has to be refi or sold. The bank/mortgage company gives one year in case the elder gets better and moves back home.

Every bank/mortgage company has their own rules, so read the mortgage note for any changes.
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A reverse mortgage becomes due on full on the death of the mortgage holder. Unless that mortgage can be paid off, the house will need to be sold with some of the proceeds paying off that debt. You may have a year while her estate is probated, but that lien will eventually have to be payed. Perhaps the bank will be willing to make a new mortgage with your sister to pay off the reverse mortgage and use the house as collateral for the new mortgage. Most elderly take out a reverse mortgage so they can stay in their home by paying for care.
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Best thing to do is check the terms of the RM.
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