What Is A Reverse Mortgage Default?

It’s not easy to default on your reverse mortgage. You simply have to keep up your property. Pay the taxes. Pay the homeowners insurance. But if you can’t do these simple things, your reverse mortgage goes into default.

Report:

Reverse mortgages, which allow older adults to convert some of the equity in their homes into cash, have been a life line for many house-rich, cash-poor seniors struggling to get by.
But now, with a growing number of reverse mortgages falling into default, these retirees could end up losing their homes.
As the name implies, reverse mortgages work the opposite of traditional mortgages. Instead of the homeowner making monthly payments to the lender, the lender pays the homeowner, in a lump sum or a set amount each month.
Available to people age 62 and older, none of the money — which might be used for medical bills, home repairs or day-to-day living expenses — has to be repaid as long as the borrower remains in the home.
Still, the loan can end up in default if the borrower doesn’t pay property taxes and homeowners insurance.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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