You wryly describe your situation as a “gray marriage turned black”. When you (a widower) and she (a divorcee) married six years ago, you bought your present home together, financing it through a combination of equal contributions of cash and a HECM-for-purchase reverse mortgage.
Your soon-to-be ex has already moved out of the house; you hope to live there for the rest of your life. Negotiations and demands have been floating back and forth, with no final decisions having been made. Among other demands, she is asking to be reimbursed for her part of the original purchase plus half the cost of the new furnishings you bought together.
With you listed as co-borrowers on the reverse mortgage, one choice would be to sell the home and use the proceeds to pay off the mortgage balance, splitting any excess proceeds. However, since you have decided to remain in the home, the divorce decree may require a payoff to your soon-to-be ex. You would not be obligated to pay anything to the mortgage company until such time as you are not longer living there (the lender may require a copy of the divorce decree in order to remove her from the debt). Any payments you are ordered to make to her might or might not be financed through further reverse mortgage borrowing.
It’s always a very sad affair when a marriage “turns black”, and you will need to rely on legal counsel as you go through the stages of divorce, using the benefits of the reverse mortgage to realize your goal of “aging in place”.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here(and scroll down).
If your heirs want to keep the home after your death, they will have to repay either the full loan balance or 95% of the home’s appraised value, whichever is less. Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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