Tax and Insurance Responsibilities of a Reverse Mortgage Borrower
ByPosted To: Community Commentary
When loan documents are signed at closing, borrowers agree to the terms of the loan. Whether the borrower took out a conventional loan or a Home Equity Conversion Mortgage (HECM), the reverse mortgage insured by HUD, the title of the home remains in the borrower's name, the bank doesn't own the home, nor do they want to own the home. The reverse mortgage has helped seniors 62 and older remain in their home with their security, independence, dignity and control but not without responsibilities to adhere to the terms of the loan. The main responsibilities are to not violate terms of the loan, generally these include: Paying property taxes Keeping hazard insurance on the property Maintaining the property Paying association dues if appropriate not changing/transferring the title Paying…(read more)