Let's Talk About the Elephant in the Room

Most people have the wrong idea about reverse mortgages and how they work.


Over 1 million people have used a reverse mortgage.

Isn't it time you got the facts?

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The Truth About Reverse Mortgage Foreclosure

All Home Equity Loans Have Borrower Obligations

Not fulfilling the borrower obligations under any mortgage or home equity loan, including any type of reverse mortgage, may lead to serious consequences—even foreclosure. That is why reverse mortgage borrowers are required to take part in pre-loan counseling (which details the loan’s commitments and conditions) before being approved for a reverse mortgage loan. 

As with any mortgageforward or reverse—you must meet your borrower obligations throughout the life of the loan, including but not limited to: keeping current with property taxes, insurance, and maintenance of the property. In addition, the property must be the borrower’s primary residence throughout duration of the reverse mortgage loan. If any of these obligations are not met, the loan will become due and payable. 

A foreclosure is often the natural resolution of a reverse mortgage after the borrower passes away. When the last surviving borrower passes away or there is no next of kin to handle a sale, the estate will simply allow the home to go into foreclosure, with no penalty to the estate. 


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Reverse Mortgage Borrower Obligations


Personal & Property Obligations

  • All borrowers on the home’s title must be at least 62 years old, or 60 in certain states with our proprietary Equity Elite product. The older you are, the more funds you may be eligible for
  • You must live in your home as your primary residence for the life of the reverse mortgage loan. Vacation homes or rental properties are not eligible
  • You must meet with an approved reverse mortgage counselor. The counselor will discuss the loan conditions, associated costs, and your borrower obligations. The goal of the counseling session is to make sure that potential borrowers fully understand and are comfortable with the process and terms of the loan

Financial Obligations

  • You must show the financial ability and willingness to meet your borrower obligations, including: 
    • Paying property-related taxes
    • Paying property insurance
    • Keeping up with regular home maintenance and repairs
  • You must own your home outright or have at least 50% equity in your home. Even if you have existing mortgage debt on your primary residence, you may be eligible for a reverse mortgage. The funds from the reverse mortgage would first pay off your mortgage and satisfy any other eligible existing liens before you could use the funds for other things

See What Sets RMF Apart

At Reverse Mortgage Funding LLC (RMF), our ultimate goal is to help older Americans experience the retirement lifestyle they deserve. 

RMF President David Peskin not only explains how today’s reverse mortgages work, but also discusses what makes RMF one of the top reverse mortgage lenders in the nation.

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