Non-Borrowing Spouse
What is an Eligible Non-Borrowing Spouse?
This is a spouse or partner under the age of 62, who co-owns the home. This person is commonly called an 'NBS.' An NBS must be specified on the HECM documents. As such, he or she will be protected from a sale or the loan being called due if the primary borrower doesn't meet the residency rules and/or passes away .
The primary rule as related to the NBS is: He or she must be a co-owner of the home.
- The NBS must execute an “Eligible Non-Borrowing Spouse Certification”
- And provide proof of date of birth and Social Security ID.
The benefit of being an eligible NBS is significant.
Within 90 days from the borrower’s date of death the “NBS” must provide:
- A legal Right to Title or Right to Remain for life (i.e. a life estate, will or revocable living trust that that clearly states the NBS is sole beneficiary of the real property subject to the HECM; or the borrower puts the spouse back on title after origination);
- An NBS Eligibility Certification; and
- Have no defaults against the HECM except for death of the borrower.
What is an 'Illegible' non borrowing spouse?
This is an individual who does not share ownership with the primary borrower. He or she are not protected and must sell the home after death of the primary borrower.