Reverse Mortgage & Certificate of Occupancy
On the anniversary of your reverse mortgage close date, you will receive a letter from your lender which must be signed and returned. The "Annual Occupancy Certificate" is very, very important to your Lender and the FHA They want to know that you are residing
in your home. After all, their only collateral is your home. therefore, you are required to certify that such is true.
It is all very simple: sign, date and return.
Guidelines require that you live in the property as your primary residence, maintain it, pay taxes and insurance and pay HOA dues (if applicable) just as you would with any home loan. There is no devil in the details regarding Reverse Mortgages. Reverse Mortgage loans continue to grow in popularity because they produce the results the loan was designed for................ Helping seniors to stay in their homes. Baby boomers are taking a good hard look at them too as a way to make their savings and investments last longer at retirement.
Because a backup note and deed of trust are signed at closing, seniors holding reverse mortgages slide easily from one lender to another if a lender happens to fail, thus preserving the open line of credit for the borrower.
Title to your home stays in your name and no, the bank does not get your home. That's why you're still paying your taxes and insurance!
If you have questions regarding your existing reverse mortgage or you would like to learn more, consult a Reverse Mortgage Specialist.
A Reverse Mortgage is a good home loan. A Certificate of Occupancy is an important document. Sign and return.