Must Do Things for a Florida Reverse Mortgage Loan
Things you must do after you take a Florida reverse mortgage.
After you take a Florida reverse mortgage, you must:
1. Live in the home. Yes you can travel and visit all the friends and relatives you want but the property must be your primary residence if you take out a Florida reverse mortgage. If you do not live in the home, the lender can have it sold to repay the debt. This is a big consideration. Do not even attempt to take out a reverse mortgage on a property you don't live in. If you decide to move, which some people do, you must settle the debt with your lender.
2. Keep the house in about the same condition as it was when you took out the Florida reverse mortgage. The lender is holding the house as collateral and if the condition is not maintained the security of the collateral is affected. If the value drops, the lender may take the property to repay the debt.
3. Keep all the property taxes current. The lender puts a lien on the property when he extends a Florida reverse mortgage. Since the loan is the collateral, the lender has a vested interest in the taxes being paid. If the taxes are not paid, the state may seize the property for unpaid back taxes and this is definitely not in the best interest of the lender. Keep the taxes paid or the lender may take the property to settle the debt.
4. Have all housing insurance up to date. This is also part of the Florida reverse mortgage contract. The lender will never tell you which carrier to use for your insurance, but only that the insurance is adequate and current. If something catastrophic should happen to the property and the insurance was inadequate or non-existent, the lender loses the collateral. If your insurance is not current, the lender may take the property.
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