Short answer
It depends on the loan paperwork. The CFPB says a co-borrower can stay if they keep meeting loan requirements. A non-borrowing spouse may qualify as an Eligible Non-Borrowing Spouse, but only if named in the loan documents and meeting HUD's rules. Otherwise the loan may need to be paid off.
A co-borrower
If your spouse is a co-borrower on the reverse mortgage, the CFPB guide says the co-borrower may continue to live in the home and receive loan payments so long as they keep meeting the loan requirements. Confirm with your servicer that the spouse is listed correctly. The guide itself says to check that your records are right.
A non-borrowing spouse
For loans made on or after August 4, 2014, the guide says the lender decides whether a non-borrowing spouse qualifies as an Eligible Non-Borrowing Spouse. The spouse must have been married to you when the loan was signed, be named in the loan documents, live in the home as a principal residence and keep meeting the loan requirements.
Older loans and your choices
For loans made before August 4, 2014, the guide says the lender can choose between foreclosing or assigning the loan so an eligible spouse can stay. If the loan must be paid, the spouse may sell or refinance. The guide mentions that a spouse trying to sell may ask for a delay of up to 180 days of a foreclosure.
Get help early
The process can be difficult, according to the guide, which suggests an attorney or HUD-approved counselor. This page is general information and not legal advice. If a sale becomes necessary, gather the loan statements and talk to the servicer before listing.
Selling for cash instead
A spouse facing a payoff deadline usually wants a straightforward, dated closing. Kaizen Home Buyers is one option to compare. We pay cash, buy as-is and charge no agent commission, so you do not fix anything first. We can send an offer within 24 hours and close in 14 to 30 days or on your schedule. Call 267-329-0084.