In what situation must a reverse mortgage loan be repaid?

The requirement for repayment of a reverse mortgage loan is primarily triggered by the borrower's death or permanent relocation. This is because a reverse mortgage is designed to provide funds to the borrower while they continue to live in the home. The loan typically becomes due when the borrower no longer occupies the property as their primary residence, which is often the case when they pass away or choose to permanently move away.

In such situations, the estate or heirs are responsible for repaying the loan, which usually means they must sell the house to cover the reverse mortgage debt, although they may also choose to refinance the loan into a standard mortgage. This repayment condition is central to how reverse mortgages operate, as they are specifically structured to allow homeowners to convert home equity into cash without requiring repayment as long as they reside in the home.

Other scenarios, like selling the property or having overdue tax payments, may influence the repayment process but are not the primary triggers. While selling the property leads to repayment, it's not the only situation where the loan must be repaid. The permanent relocation aspect is crucial, as it distinctly indicates the cessation of using the home as the primary residence. Thus, the correct answer reflects the essential conditions under which a reverse mortgage must be repaid.