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Behind on taxes or insurance on a reverse mortgage: what to do

By Tom Jarboe, NMLS #210600Facts checked November 2, 2026

Quick answer

The short version: call your servicer, the company that sends your monthly statement, as soon as you know a tax or insurance bill is behind. Unpaid property charges can lead to the loan coming due and, in time, foreclosure. But a servicer can offer help such as a repayment plan, and HUD's rules let a borrower fix the problem any time before foreclosure.

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Key points

  • Call the servicer first. It's often not the company that made the loan, so use the number on your statement.
  • A repayment plan may be possible. It's based on your income and can run up to 60 months (five years).
  • Extra time is possible in some cases. If the youngest living borrower is 80 or older and there are critical circumstances, HUD may allow more time, case by case.
  • Small amounts behind get a closer look. A servicer may delay calling the loan due when the amount behind is $5,000 or less, under conditions.
  • Catching up can still work. A default can be cured any time before foreclosure.
  • Keep answering the yearly occupancy letter. Missing it can cause its own problems.
To keep a reverse mortgage in good standing
  • Live thereIt stays your main home.
  • Property taxesPaid on time.
  • InsuranceHomeowners insurance kept in force.
  • HOA duesIf you have them.
  • UpkeepKeep the home in good repair.
  • Yearly letterAnswer the occupancy certification.

Fall behind on these and the loan can come due.

Rather talk it over than read? Call Tom, no pressure: (909) 869-6588 →

Why this matters

With a reverse mortgage (HECM) there is no required monthly mortgage payment. You still pay property taxes, homeowners insurance, flood insurance where required, HOA dues and upkeep. Not paying property charges is one reason the loan can be called due, with HUD's approval, and the home can then be foreclosed.

I'll give you the hard part first. The hopeful part is that the rules include ways to catch up. The loan balance also grows over time as interest, mortgage insurance and fees are added, and any taxes or insurance the servicer pays for you are added too.

What the servicer can offer

OptionWhat it isThings to know
Repayment planA plan to repay the taxes and insurance the servicer advanced. The monthly amount is figured from 25% of your monthly surplus income, over up to 60 months. HOA dues may be included.It depends on your income.
At-Risk extensionHUD may delay foreclosure if the youngest living borrower is 80 or older and there are critical circumstances, such as a terminal illness, a long-term physical disability, or a family member receiving care in the home. A servicer may look at this when your income can't support a repayment plan.HUD decides, case by case. Never guaranteed.
Small amounts behindA servicer may hold off asking HUD to call the loan due when the amount behind is $5,000 or less, under conditions HUD sets.Ask your servicer which conditions apply to you.
Catching up (a cure)Pay the overdue charges and repay what the servicer advanced.Allowed any time before foreclosure.

Even after a loan comes due for reasons other than death, a borrower can often fix the problem and reinstate it, even after foreclosure has started. A servicer can refuse if it already allowed a reinstatement in the past two years, or for a few other narrow reasons.

Tom Jarboe

Questions about your own situation?

Talk with Tom Jarboe. He's been helping families with home loans since 1986. You'll get plain answers, and he'll tell you if a reverse mortgage isn't the right fit.

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Refinancing into a new HECM

Some homeowners ask whether a new reverse mortgage could pay off the old one. HUD's guidance says a servicer may offer it only if you qualify under all the usual HECM rules, and only before the loan has been called due, so it isn't something to count on.

Any new HECM goes through the same review as the first one, and HUD allows a HECM-to-HECM refinance only when the increase in what you can borrow beats the total cost by an amount HUD sets, with a written estimate. Ask your servicer and a HUD-approved counselor about your options.

See refinancing into a reverse mortgage. In California, any new reverse mortgage needs independent counseling, and the lender can't take a final application or charge any fee until 7 days after counseling.

The yearly occupancy certification

Your servicer must get a yearly certification that the home is still your main home. It can be on paper, electronic, or verbal (verbal has been allowed since Nov. 30, 2023). Tell the servicer about any absence longer than two months. Not answering on time can trigger a review of whether the loan is due. More in the occupancy rules.

Do and don't

My advice, in short:

Do

  • Do call the servicer using the number on your statement, and write down the date, the name and what was said.
  • Do ask about a repayment plan and whether the At-Risk extension could apply.
  • Do open every letter from the servicer and the county tax office.
  • Do answer the yearly occupancy letter or call.

Don’t

  • Don't assume it's too late.
  • Don't pay anyone upfront who promises to fix this for you. Ask the servicer or a HUD-approved counselor first.
  • Don't sign up for California's property tax postponement or allow a new lien on the home without asking your servicer and a HUD-approved counselor first.

A made-up example to show how it works. Your situation will be different.

Example: Frank and the missed tax bill

Frank, 83, lives alone in Diamond Bar and has had a reverse mortgage for years. After a hospital stay, his property tax bill went unpaid. His daughter found the notice, and together they called the servicer.

It explained what was owed and asked about his income so it could look at a repayment plan. Because Frank is the only borrower, he's over 80 and he has a long-term physical disability, they also asked whether an extension might apply.

HUD decides that case by case, so nothing was promised, and the plan only works if the bills stay current. Frank and his daughter wrote down each call, then met a HUD-approved counselor to talk through their choices.

Questions so far? Tom is glad to walk you through it. Call Tom: (909) 869-6588 →

Questions families ask

What happens if I fall behind on property taxes with a reverse mortgage?

The servicer will contact you, and the loan can be called due if property charges stay unpaid. Before that, options such as a repayment plan may be available. Call early. A default can be cured any time before foreclosure.

Can a reverse mortgage foreclose on you, and how can you get more time?

Yes, it can if the loan terms aren't met, including taxes and insurance. More time may come from a repayment plan or, if the youngest living borrower is 80 or older and there are critical circumstances, an At-Risk extension. See can you lose the home?

Who keeps paying the property taxes and homeowner's insurance on a reverse mortgage?

You do, unless you have a fully funded set-aside, which pays them and adds each payment to your balance. HOA dues and upkeep stay yours. See how a set-aside works.

I got a foreclosure notice. Is it real?

I can't tell from here. Don't use the phone number on the letter. Call the servicer using the number on your statement, and ask a HUD-approved counselor to look at it with you. Scams aimed at older homeowners exist.

Can I postpone my California property taxes if I have a reverse mortgage?

The two don't mix well. Under California's Property Tax Postponement program, the postponed taxes become a state lien and carry 5% simple interest, and choosing a reverse mortgage makes all postponed taxes due. So does refinancing the home. Ask your servicer and the program before you apply for either.

Tom Jarboe

Your next step

If you have questions or want a second opinion, talk with me first. I'll go over what's happening and your options, with no pressure. Call (909) 869-6588 or email [email protected]. I'm not your servicer and can't change your loan terms or their decisions. I'm a loan officer, not a counselor.

For the past-due bill, any default letter and its deadlines, contact your servicer. Only the servicer can set up a repayment plan, so don't wait on me for that. A HUD-approved counselor can also help you think through options: find one on HUD's site or call (800) 569-4287. Your servicer after closing · About me

A HECM is insured by FHA, and that insurance protects the lender, not you. New American Funding is not acting for HUD, FHA or any government agency.

Sources (read October 29 to November 2, 2026)11 sources · show all

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Tom Jarboe, Regional Sales Manager, New American Funding, NMLS #210600, Diamond Bar.

As a loan officer, I want you to be able to check everything. That's why I give you honest answers on both sides, cite the official rules, and make sure you meet an independent HUD-approved counselor before you apply. My goal is that you make an honest, educated decision. More about me.

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Questions? Ask a person, not a robot.

Call or email Tom. No pressure and no obligation: if a reverse mortgage isn't right for you, he'll tell you, and point you to what might be.

Tom Jarboe, Regional Sales Manager, New American Funding
NMLS #210600
20955 Pathfinder Rd, Suite 200
Diamond Bar, CA 91765

(909) 869-6588
[email protected]