This aspect of reverse mortgages satisfies the elderly person's wish to live in his home for his entire life. Any interest accrued pursuant to reverse mortgages is not deductible until the end of the term. However, because the end of the term cannot be definitively defined, the debt may often grow larger than the value of the residence. Nevertheless, since reverse mortgages are non recourse loans, the lender is not entitled to receive the deficiency from the borrower. However, if the value of the house at sale is more than the amount of the debt, the borrower's estate is entitled to excess proceeds.
Reverse mortgages can significantly improve the life of an elderly person.
It is beneficial due to its non-recourse nature, the diversity of disbursement alternatives, and the fact that payment is not due until the end of the term. The Law Office cannot provide legal advice or answer legal questions over the phone or by email. The Law Office now accepts payment by American Express, Visa and Master Card. It is not intended be a source of legal advice, do not rely on information at this site or others in place of the advice of competent counsel. The Law Office of Kenneth Vercammen complies with the New Jersey Rules of Professional Conduct.