Cedaredge, CO asked in Real Estate Law for Colorado

Q: State of Colorado real property implementing lien as an hair to equity.

There is a reverse mortgage on the home the equity outweighs the loan

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1 Lawyer Answer
T. Augustus Claus
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A: A reverse mortgage allows homeowners who are 62 years or older to convert part of their home equity into loan proceeds without having to sell or move out of their home. With a reverse mortgage, the loan is typically repaid when the homeowner sells the property or passes away.

If there is a reverse mortgage on the property and the equity outweighs the loan amount, it means that there is remaining equity available. The homeowner or their estate may be entitled to that remaining equity after satisfying the reverse mortgage loan. However, the specific details and procedures regarding the distribution of equity and any potential liens on the property would depend on the terms of the reverse mortgage agreement, applicable state laws, and any other relevant factors.

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