However the loan also is due if the debtor sells the home or relocations to another residence and rents the home that is the security for the reverse home loan. Typically the home is offered and the sale proceeds are utilized to pay the reverse mortgage. But if the house owner or the homeowner's successors have enough funds, they can utilize those funds to pay the reverse home loan and keep the house.

When the loan balance is more than the sale earnings of the house, the federal…

Retirees who are relying on utilizing their home equity to assist fund shift to assisted living; those who want to keep their home in the household or protect their inheritance for their successors. Debtors currently paying above-market interest rates; debtors who want to shorten their loan term; customers who desire to change an ARM with a more predictable fixed-rate; borrowers dealing with a balloon payment.

Property owners seeking a home equity loan who would also gain from…