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Can a reverse mortgage go into foreclosure?

Yes. Even though you do not make monthly loan payments, a reverse mortgage can go into foreclosure if property taxes, homeowners insurance, or HOA dues go unpaid, if the home is no longer your main home, or after the borrower dies. Free reverse mortgage counselors and senior legal aid can help you find a way through. The sooner you call, the more choices you have.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

What can cause a reverse mortgage foreclosure?

  • Falling behind on property taxes.
  • Letting homeowners insurance lapse.
  • Falling behind on HOA dues, if you have them.
  • Not keeping the home in good repair.
  • No longer living in the home as your main home.
  • The death of the last borrower.

If you get a letter from your reverse mortgage company about any of these, do not set it aside. Call a counselor right away.

What happens when the borrower dies?

Most reverse mortgages are FHA-insured loans called HECMs. For a HECM:

  • Heirs can generally keep the home by paying off the loan for the lower of the full balance or 95 percent of the home's current appraised value. Heirs can also sell.
  • A spouse who was not on the loan may qualify to put off the foreclosure and stay in the home. Not every spouse qualifies. Living in the home and other rules apply.
  • An older rule said such a spouse had to get title within 90 days. HUD removed that rule in 2021.
  • Not every reverse mortgage is a HECM. Other loans can have different rules, so ask what kind you have.

Do the usual foreclosure protections apply?

Not all of them. Federal rules that make most mortgage companies wait 120 days and review complete help applications do not cover reverse mortgages. Do not count on that extra time. Act as soon as you see a problem.

What if I am behind on property taxes?

  • The State Controller's Property Tax Postponement program is not open to homes with a reverse mortgage.
  • If you already postponed taxes through that program, getting a reverse mortgage makes the postponed taxes due.
  • If you do not have a reverse mortgage, read our property tax postponement guide.
  • The California Mortgage Relief Program once helped with reverse mortgage arrears. It is closed and no longer takes applications.

Where can seniors get free help?

  • HOPE Hotline, which offers reverse mortgage counseling: 888-995-4673.
  • Find a HUD-approved counselor: 800-569-4287. Ask for a reverse mortgage (HECM) counselor.
  • A few HUD-approved reverse mortgage counselors in California: GreenPath Financial Wellness, Irvine, 866-217-0543. NID Housing Counseling Agency, Los Angeles, 323-299-4067. Urban League of San Diego County, 619-266-6237. Greater Sacramento Urban League, 916-286-8652. A-1 Community Housing Services, Hayward, 510-674-9227.
  • FHA Resource Center: 800-225-5342.
  • Housing and Economic Rights Advocates (HERA), statewide: 510-271-8443, extension 300.
  • Bet Tzedek Legal Services, Los Angeles County: 323-939-0506.
  • Legal Assistance to the Elderly, San Francisco: 415-538-3333.
  • Senior Advocacy Network, Merced and Stanislaus counties: 209-577-3814.
  • California Advocates for Nursing Home Reform, statewide reverse mortgage help: 415-974-5171.
  • Find more free legal aid by county at LawHelpCA.

How do I stay safe from scams?

Seniors with paid-down homes are often targeted. Never sign over your deed to someone who says they will save your home. Never pay anyone up front to fix your loan. Ask a trusted family member or counselor to look at any offer first. See our scam red flags guide.

General information, not legal advice. Sources: HUD Mortgagee Letter 2021-11; 12 C.F.R. section 1024.30(b); California State Controller, Property Tax Postponement Program Fact Sheet; HUD housing counselor data and legal aid listings checked October 29, 2026.

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