One of the most common questions we get is, do I need to maintain homeowner’s insurance on my property?
I mean, I’m paying my insurance and taxes on my own on a reverse mortgage. Is a lender really going to check on that? Do I have to keep carrying homeowner’s insurance? And the answer is yes, you do have to maintain mortgage insurance on your property. You have to keep the property in good condition.
The reason why is because the collateral is what backs reverse mortgage. The reverse mortgage company is looking at it from the perspective of, what happens if that home burns down, then they don’t have collateral. And if you don’t have insurance to rebuild the home, then they’ve lost their collateral. So the reverse mortgage is in trouble.
So yes, you do have to maintain homeowner’s insurance.
You can determine who you want to be your carrier on that on your own. It’s not mandated by the reverse mortgage company, but yes, you do have to maintain homeowner’s insurance. If you have any other questions about a reverse mortgage or any other mortgage related questions, give me a call. 303-670-0137 or firstname.lastname@example.org