Am I responsible for maintenance and taxes if I have a reverse mortgage? What if I can’t afford to repair my home? Can a reverse mortgage be canceled?
When you have a reverse mortgage on your home you are still responsible for the maintenance of the home and property and for insurance and taxes. You must keep your home and property in good repair or you may be forced to sell the home. A reverse mortgage is based on the equity of your home. Failure to keep the home repaired will decrease the value of the home and make it harder to sell. For this same reason it is necessary to keep the home insured and taxes up to date. If the home is not insured at any time the reverse mortgage will become forfeit and you will immediately owe the money. Back taxes can also cause forfeiture because the mortgage company will not risk losing the home to any taxing authority.
What if I can’t afford to repair my home when I have a reverse mortgage?
If you can not afford to repair your home when you have a reverse mortgage you are at risk of loosing your home. Any reverse mortgage contract will have a maintenance clause attached to it stating this fact. Failure to repair will be considered breach of contract.
Can a reverse mortgage be canceled by the mortgage company/
Yes, but only under certain conditions. A reverse mortgage holder can recall the loan if the home falls into disrepair or if the homeowner fails to keep it properly insured. A loan can also be recalled if there are back taxes due upon the home or if a taxing authority places a lien against the home for any reasons. The loan will automatically cancel if you no longer live in the home as a main residence or when you die.
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