MovieChat Forums > 99 Homes (2015) Discussion > Question about reverse mortgage

Question about reverse mortgage

posted 8 years ago by laplante-co-672-297856
4 replies | jump to latest

Normally, you don't pay back a reverse mortgage until the home is sold. And, typically, you can only borrow 75% of the value of the home to protect against the possibility that the value of the home might drop.

So why was the old guy tossed out of his home? Was it because the value of the home had dropped significantly?

[–] creegah-3 8 years ago

One condition of the RM is that the home is maintained and the other is that the insurance is kept in force. In this case, the insurance premiums were not paid and it lapsed.

[–] laplante-co-672-297856 8 years ago

Ah! Guess I missed that bit. Makes sense.

[–] pd78w 8 years ago

In this case, the insurance premiums were not paid and it lapsed.

I missed that part, too. Need to rewatch that scene. I never heard the word "insurance" mentioned the first time.

[–] teejpa4 8 years ago

I never heard the word "insurance" mentioned the first time.

I didn't hear the term either but insurance might be what caused the problem. Nash said the old man and his wife had violated the terms of the mortgage. Terms of the reverse mortgage probably requires the house to have an insurance.