Source: https://library.nclc.org/hf/010211
Timestamp: 2019-04-25 22:05:51+00:00

Document:
● If the borrower has failed to pay property charges has the servicer considered the available loss mitigation options? See § 14.3.2, infra. HUD has directed servicers to address property charge defaults by considering various loss mitigation alternatives.
● If the loss mitigation alternatives for property charge defaults are not affordable, is chapter 13 bankruptcy an option for curing the default? See § 14.3.2, infra.
● Is the borrower facing foreclosure due to non-occupancy? See § 14.3.3.2, infra. Borrower’s failure to maintain the home securing the reverse mortgage as a principal residence is an event of maturity. In some instances, servicers mistakenly believe the property is no longer occupied. Non-occupancy should be a curable default.
● Has the loan matured due to the death of the homeowner? See § 14.3.3.4, infra. If so, did the servicer offer the heirs the opportunity to satisfy the loan for 95% of the property value? See § 14.3.3.4.3, infra. Would the homeowner’s heirs be able to pay off the amount due through a chapter 13 bankruptcy? See § 14.3.3.4.4, infra.
● Did only one spouse take out the reverse mortgage and is the servicer asserting the loan has matured because the borrower has died? See § 14.3.3.3, infra. If the spouse continues to occupy the property as a principal residence, they may be able to remain in the property notwithstanding the death of their spouse.

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