Property Taxes, Insurance & Maintenance

This is the most common default trigger. Know the obligations:

Property Taxes

• Must pay property taxes on time each year
• Delinquency can trigger loan due-and-payable

Homeowners Insurance

• Must maintain continuous insurance coverage
• Lender can force-place insurance if you do not

Maintenance

• Must keep home in good repair
• No major deferred maintenance

Default Triggers

If you fail to pay taxes, insurance, or maintain the home, the loan becomes due and payable. This is the #1 way reverse mortgages are called due.

Tip

Set up automatic tax/insurance payments to avoid accidental default.

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.