What is a key responsibility of a homeowner with a reverse mortgage?

In the context of a reverse mortgage, it is essential for homeowners to maintain certain financial responsibilities to ensure the health of their mortgage agreement. One of the key responsibilities is paying property taxes. This is crucial because failure to pay property taxes can lead to the foreclosure of the home, which would jeopardize the reverse mortgage arrangement. Unlike traditional mortgages, where monthly mortgage payments are generally required, reverse mortgages allow homeowners to access their home equity without monthly repayments as long as they meet the necessary conditions, including staying current on property taxes.

While homeowners may also have responsibilities regarding home appraisal services and home renovations, these do not carry the same weight in the context of maintaining the reverse mortgage and avoiding financial pitfalls. Therefore, ensuring that property taxes are paid is foundational to protecting one’s equity and securing ongoing access to the benefits of a reverse mortgage.