Military Retiree Reverse Mortgages
Colorado Springs large military retiree population includes many who used reverse mortgages for retirement income. When these veterans pass, their heirs often inherit both property and HECM obligations.
Reverse Mortgage Basics for Heirs
What You Inherit
You inherit the property but must satisfy the reverse mortgage. The loan balance includes all principal, interest, and fees accumulated over the years the borrower had the loan.
The 95% Rule
Heirs can satisfy an HECM by paying 95% of the current appraised value, even if the loan balance is higher. This protects heirs when loan balances have grown significantly.
Non-Recourse Protection
If the loan exceeds home value, heirs owe nothing personally. You can walk away without debt. This is a key HECM protection.
Colorado Springs Neighborhoods We Serve
HECM Servicer Communication
The loan servicer must be notified of the borrower death. They will provide payoff information and timeline requirements. We coordinate with servicers to ensure smooth closings.
Frequently Asked Questions
Can you buy a Colorado Springs house with a reverse mortgage?
Yes. We purchase properties with HECMs throughout Colorado Springs. The reverse mortgage is paid from proceeds and heirs receive remaining equity.
My parent was a veteran - does that affect anything?
Some veterans have VA-backed reverse mortgages with different terms. We work with all reverse mortgage types and coordinate with appropriate servicers.
How quickly can you determine if there is equity?
We can assess property value and loan payoff within 24-48 hours. You will know quickly whether equity remains for heirs.
What happens if I do nothing?
The lender will eventually foreclose and sell the property. Any excess proceeds should go to heirs, but the process takes longer and you lose control. Selling directly is usually better.
How fast can you close?
We close in 7-14 days. This meets HECM servicer timelines and gets funds to heirs quickly.