What are my responsibilities as a reverse mortgage loan borrower?

There are a few requirements for HECM borrowers for home lenders. If you do not meet these requirements, you may lose your home in adulthood. As a mortgage lender, you have three key obligations:

1. You are required to pay property expenses such as property taxes and homeowner's insurance on time.
2. Your home should be neat and tidy.
3. Your home should be the main residence.

Property taxes and homeowners insurance must be paid on time 

Before the loan closure your lender will do a financial assessment to find out how you will pay your ongoing property taxes and homeowners insurance, and if applicable, flood insurance. Your options may include:

• Make Payments directly to the insurance company and the tax officer.
• Make a direct payment, but set aside your loan to help you with these payments.
• The lender takes care of your payments using your loan amount in a set-aside account. The “set aside” levy is part of your mortgage loan, homeowners and flood insurance. There are also other types of accounts set aside, such as maintenance and service fees.

Your home must be kept in good repair

After closing you should keep your home well maintained.

Warning: Beware of contractors who approach you for a loan repayment to pay for your home repairs. Learn about all your options. Don't allow yourself to be pressured into borrowing money to repair a home.

Your home must be your principal residence 

Every year you should confirm in writing that you live in your home as a primary residence. You could lose your home for foreclosure if you have a mortgage loan and:

1. You are not in your home for a year for non-medical reasons, either
2. You have not been in your home for more than 12 consecutive months for health care purposes.