There are so many reverse mortgages pros and cons, and there are also a lot of questions that surround this type of mortgage. One of those questions is when does the reverse mortgage loan become due and payable? It is a great question, as well as an important one.

There are basically 4 circumstances in which the loan will need to be repaid. First, if you die or move out of the house, the loan immediately becomes due. Second, if you do not live in the home for 1 full year, the loan will need to be repaid.

The third circumstance is if you fail to keep current on your homeowners insurance or property taxes. The bank or other lender will demand repayment. Finally, if for some reason you let the home and property deteriorate beyond that which is considered livable and reasonable, the lender can demand payment of the loan.