Reverse Mortgage Details Index
As noted on the Basics index, Reverse Mortgages are very simple. But, like many things, it is all in the details. Here are the Details.
Acceptable Properties
A number of different residential properties types are acceptable. Commercial property is not allowed.
Non-borrowing Spouses or Domestic Partners
There are different implications of a spouse or domestic partner not being on the reverse mortgage. There are also specific steps that are required for the HECM counseling of the borrower.
Holding Title
Title can be held in a variety of ways including trusts and life estates when you have a reverse mortgage.
Homeowners Insurance
Like all homes with a mortgage, homeowner's insurance is required. If you are in a flood zone, flood insurance will be required.
Property Taxes
You will need to stay current with your property taxes. If your state/county/township has a program for deferred property taxes, that may be allowed.
A Reverse Mortgage May Be Used By Those On Medicaid, Medi-Cal and SSI
With caution, those on Medicaid may do a Reverse Mortgage.
Subordinating Other Loans
It is possible to have loans other than the Reverse Mortgage on a property but unusual.
Use of a Power of Attorney or Conservatorship
Using a Power of Attorney or Conservatorship with a reverse mortgage can be tricky.
What is the Likelihood of a Reverse Mortgage Foreclosure
Since reverse mortgage borrowers don't have to make payments, foreclosure rarely comes into play. Here is some anecdotal information about that.
Foreclosure
There are occasions when a foreclosure is used with a reverse mortgage
Preventing Foreclosures
There are times when a reverse mortgage could prevent foreclosure of a regular mortgage.
