What is a Reverse Mortgage? – Unmet Obligations

Borrower options when not meeting reverse mortgage obligations.

 

Your reverse mortgage servicer can help you understand your options. These may include:

  • Your free HUD counselor will review your financial situation, may assist you in balancing your budget or finding resources to help you (i.e., finding you sources of income or financial assistance), and work with your servicer to resolve your situation.
  • If you have equity in your home, you may qualify for refinancing your reverse mortgage to pay off your existing reverse mortgage plus any past-due property-related expenses.

  • You may sell your home to anyone, including your heirs, and use the sale proceeds to pay off your reverse mortgage loan.
  • If you want to stay in your home, you or an heir may decide to pay off the reverse mortgage by taking out a new loan or finding other financial resources.
  • You are required to pay your property taxes, keep current the property insurance in place, maintain the home and notify the lender if you will be away from the property for an extended period of time.