FAQ – Reverse Mortgage Maturity

What is a maturity event?

A maturity event is any event which may cause your reverse mortgage to be called due and payable. Once a loan has reached a maturity event, then no additional funds may be advanced from the reverse mortgage. Such maturity events include:
All borrowers have passed away.
All borrowers have sold or conveyed title of the property to a third party.
The property is no longer the principal residence of at least one borrower for reasons other than death.
The borrower does not maintain the property as principal residence for a period exceeding 12 months because of physical or mental illness.
Borrower fails to pay property taxes and/or insurance and all attempts to rectify the situation have been exhausted.
The property is in disrepair and the borrower has refused or is unable to repair the property.

How long will my estate have to pay off the reverse mortgage once it has been called due and payable?

The reverse mortgage is to be paid in full once it has been called due and payable. If arrangements to pay the reverse mortgage are not made with your loan servicer, then your loan servicer may proceed with foreclosure between 30 days and six months from when your loan has been called due and payable.  If you or your estate are actively working to either refinance your property or sell your property so as to satisfy your reverse mortgage, then foreclosure maybe forestalled.  It is not typical to forestall foreclosure after one year has passed since the maturity event.