I've been taking care of mom with dementia for several years. I'm still undecided for many reasons but eventually she will need to. Her house has a reverse mortgage so I'm wondering how that will pan out. Will the reverse mort. company immediately demand I move out? I realize I will have to soon enough, but I'm wondering how long I might have. At this point, I think I'd need a few months to save enough to move (I will need/want to move out of state). Of course, there was no mortgage to pay and mom didn't charge me rent (in exchange for taking care of her). I did pay for utilities. I definitely would'nt want to buy the house from the mortgage co, which I understand is an option. I'm hoping someone who has been in this situation can give me advice on exactly what will happen as soon as mom goes to a NH. How do they get notified? Am I obligated to inform them? Does it take time for them to ask me to leave or will they want me out immediately? We do get a form yearly that we need to fill out so I guess at that point I would have to send it in saying she is no longer here. That could give me up to a year to save enough to move, assuming they don't want me out the second mom is no longer living in the house. Thanks in advance!
As for notifying the reverse mortgage company, it is better to let them know.... if they find out on their own, the mortgage could become due and payable immediately even if there is that one year option to keep the house.
Your Mom's reverse mortgage might allow the house to remain as is for one year from the date your Mom enters the nursing home, the reverse mortgage does this thinking your Mom could get better and return to the house. Someone would need to be responsible for the homeowner's insurance and the property taxes.
Or the reverse mortgage might only allow the above for a spouse.... then you might have to put the house on the market For Sale within 30-60 days with a Realtor, at market value, aggressively marketed. Again, depends on the rules and regulations of when it was written.
Or re-finance the house immediately to pay off the reverse mortgage.