What happens to the mortgage and promissory note debt if I need to move into a different living arrangement (e.g. nursing home, assisted living, apartment) or if I pass away?
A. If the mortgage and promissory note are held by a lender other than NESDCAP, the mortgage and note remain on the property until the property is sold or transferred. At that time, the recapture amount is based on the day the home is no longer your primary residence or the day of the death of the person who received the funding. However, if the person purchasing the home is eligible, they may have the option to assume the forgivable mortgage and promissory note, if that option was on the original mortgage and promissory note. The recapture amount is based on the number of years / months that have been forgiven as well as the amount of profit that may be obtained by the previous owner.
Related Questions
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