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If the Mortgage Co. Found out that my grandmother was NOT staying at the (her) home. But, her granddaughter does live there, and has. Even when the contract was done. Unknown to her and nowhere does it say she ever lived there.

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Reverse Mortgages become due if the borrower has been away from the home for 12 straight months, or if the property taxes and homeowners insurance hasn't been paid.

Yes, the Grand-daughter can live there for a year... hopefully she is paying the property taxes and homeowners insurance. But once that 12 months is up, the Reverse Mortgage loan becomes due and payable along with the interest and fees. That means the house either goes on the market For Sale and the Grand-daughter can purchase the house with her own loan.

Are you asking if the Grand-daughter would be mentioned on the loan? No, she would not be on the loan at all. Only a spouse would be mentioned on a loan. Even if somehow the Grand-daughter was on the Deed, she couldn't be included in the Reverse Mortgage.
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This is your 4th time asking. The answer is SOON and better you call them than they suddenly call you.
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ThereIsNoTry, some of the older Reverse Mortgages wouldn't allow a spouse who wasn't on the loan to remain in the house. That spouse would have to refinance to pay off the Reverse Mortgage or sell the house. That happened to my boss who's wife got a Reverse Mortgage, but his name wasn't on the loan. When she passed away he was very surprise to find out that he had to either get himself a new regular loan within 30-60 days or sell the house. Sadly he had to sell the family home he and his wife owned for 30 years.

Good news, there has been a recent new ruling where a spouse can stay in the house until he/she moves or pass on even if their name wasn't on the Reverse Mortgage, but said spouse had to have been married to the borrower at the time of application. And said application was after a certain date, I believe August 2014.
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You don't want to deal with any fraud or penalties should they arise for the reverse mortgage.
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They will find out. I know of someone who tried to rent out their home that they had gotten a reverse mortgage on and the company found out. The person was living in another state and had purchased another home. I don't know exactly how they find out but they do so I would take care of this ASAP
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Terrygma, bet the underwriters for the new loan application on the new purchase found out the other house had a reverse mortgage when they ran a credit check and asked the reverse mortgage bank for the current information... oops.
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Thanks for this info. I had a Social Service person ask me why I don't do a reversed mortgage on Moms house. Seems she didn't know that Mom has to be living in it, she lives with me. The house is up for sale too.
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The first answer had the ring of truth, and while not lawyers, I googled the question and found a site of frequently asked questions and it listed all the things that would make a reverse mortage due..... One of them is just what the first answer said, here is how it phrased it: "The borrower does not maintain the property as principal residence for a period exceeding 12 months because of physical or mental illness" I would send you a link but this site generally won't let you. oops, it also says if "The property is no longer the principal residence of at least one borrower for reasons other than death." so that seems to contradict the first one. It also says " If arrangements to pay the reverse mortgage are not made with your loan servicer, then your loan servicer may proceed with foreclosure between 30 days and six months from when your loan has been called due and payable. " so it's not like they can show up to evict without notice. However, the notice might go to your grandmother so you better be sure someone is opening her mail.
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So he did sadly have 30-60 days. Assuming they make the current resident aware, which they might not since she is not on the deed. I think they will post a notice on the door giving the 30-day warning. Thank you freqflyer.
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