Reverse Mortgage Specialist Lawyers

Reverse Mortgages are a widely used financing method in European countries. In 2017 alone, more than 37,000 reverse mortgages were sold in the United Kingdom, 1,150 in Sweden, and more than 500 in Italy.

Financial institutions aim to expand the success of this product and promote its adoption in Spain.

It is a loan secured by a mortgage on the primary residence, granted to individuals over 65 years of age or those with severe or total dependency, with repayment not required until death. In this case, the client does not approach the financial institution to request a loan to purchase a home, but rather already owns a property and offers it to the institution as collateral for the loan.

The borrower receives a sum of money from the bank in exchange for the property (usually in the form of a monthly payment). The advantage is that they can continue to live in the property until their death and never lose ownership.

Once the borrower with a reverse mortgage has died, it is up to the heirs to settle the matter with the lending institution. They can choose to recover the property by paying off the mortgage, or if the heirs do not wish to, or cannot, pay off the mortgage, the lending institution can foreclose and recover the outstanding debts, plus interest.

In any case, we recommend seeking proper external advice to avoid taking out this product when it may not be beneficial.

Contact one of our lawyers for banking malpractice. At BBS Abogados, we can help you recover your investment. Consult one of our expert lawyers.