Listed Name on Title

HUD requires the reverse mortgage borrower to be the only person to appear on title. In the case of a couple, where one person is over 62, but the other is not, it is permissible to remove the younger spouse/owner off title. However, there are risks associated with doing this.

If the borrower permanently vacates the property before the surviving spouse/owner turns 62, then the surviving spouse/owner may have to sell the property to pay back the reverse mortgage unless other funds are located.

If the person who was originally taken off title is now eligible to get a reverse mortgage, and there's still enough equity left in the home, it's possible that person could be added back onto title, get a reverse mortgage, and pay off the original loan, thus allowing the person to remain in the home.

Please note that a person cannot be removed from title and then added back on, without triggering a repayment event.

On occasion, the name of a child or some other relative or friend may already appear on the title for inheritance reasons at the time the loan application is taken. Some borrowers will put their son or daughter on the title thinking they can avoid probate. This is a relatively minor thing to fix, but it is something that needs to be addressed. Otherwise the loan can’t be made.

To remove the child’s name you need to have them sign a quit-claim deed’ at closing. A title company can assist with that.

There are occasion where the borrower’s children or heirs will refuse to take their names off the title, which can lead to further delays or the loan not closing at all.