FAQ – Financial Hardship

What if I am already in default?

A HUD-approved counseling agency will provide more information about your situation. There may be options to help you avoid foreclosure.

What if I have received a foreclosure notice?

If you can’t pay off the reverse mortgage balance, contact the company servicing your reverse mortgage to find out your options. You may be eligible for a Short Sale or Deed-in-Lieu of Foreclosure.

What happens if I file for Bankruptcy while I have a reverse mortgage?

Filing for Bankruptcy is NOT a default in the terms of the Home Equity Conversion Mortgage (HECM) Program. Under the HECM program, you cannot access any additional reverse mortgage funds unless that request for funds is approved by the court or the trustee monitoring the bankruptcy proceedings.