Reverse mortgages have become a popular financial tool for many California seniors, allowing them to tap into their home equity without monthly loan payments. These loans, often insured by the Federal Housing Administration (FHA) through the Home Equity Conversion Mortgage (HECM) program, can provide much-needed cash for retirement expenses. However, a significant challenge arises when borrowers struggle to keep up with property taxes and homeowners' insurance—obligations that remain the homeowner's responsibility even with a reverse mortgage.
Failing to pay these charges can lead to default on the loan, potentially resulting in foreclosure. This issue is particularly acute for seniors on fixed incomes, where unexpected increases in property taxes due to California's Proposition 13 reassessments or rising insurance premiums amid wildfire risks can create overwhelming financial strain.
According to HUD guidelines, borrowers must maintain these payments to avoid the loan becoming due and payable, which could force the sale of the home or loss of residency rights.
If you're facing difficulties paying your property taxes or insurance with a reverse mortgage, immediate action is crucial. The U.S. Department of Housing and Urban Development (HUD) recommends seeking help from a reverse mortgage housing counselor. These counselors can guide you through options like repayment plans, local assistance programs, or even loan modifications to prevent default. www.consumerfinance.gov
HUD's HECM Default Counseling specifically assists seniors at risk of defaulting due to unpaid real estate taxes, homeowner association fees, or insurance. Visit Hud.org. To find a HUD-approved counselor, search the HECM Counselor Roster on HUD's website or call (800) 569-4287.
Additionally, nationwide counseling is available through HUD intermediaries, ensuring you get unbiased advice tailored to your situation. Remember, early intervention can make all the difference. HUD emphasizes that while no monthly mortgage payments are required, staying current on taxes and insurance is essential to remain in your home indefinitely.
Contact Lawyers Realty Group for Expert Help
If local resources fall short, counselors can connect you to state-specific aid, such as California's property tax assistance programs for seniors. Contact Lawyers Realty Group for Expert Help. Before facing foreclosure or further complications with your reverse mortgage, seek legal, financial, and real estate advice from professionals who understand California's unique housing landscape. Lawyers Realty Group combines the expertise of an Attorney and Realtor to provide tailored insights and solutions. Call (949) 264-0966 for a free legal analysis with no obligation. Protect your home and equity—reach out today.
