To assist struggling senior homeowners with FHA reverse mortgages who are delinquent on real estate taxes and possibly facing foreclosure, IHDA created the Hardest Hit Fund Reverse Mortgage Assistance Program. Qualifying homeowners with an FHA Reverse Mortgage may qualify for up to $35,000 in federal assistance. Read how the program helped a homeowner here –
John, a 79-year-old U S Army veteran took out a Home Equity Conversion Mortgage (with Line of Credit payment plan) in 2010. Due to medical issues, he was unable to work and he and his wife could not afford to pay real estate taxes with their limited Social Security income. At initial contact, the reverse mortgage delinquency was over $38,000 due to the taxes the servicer had advanced. Due to an attorney’s advocacy, John was determined by the VA to be 60% disabled (a direct result of his military service) and consequently qualified for monthly VA disability benefits. When John received a large retroactive settlement from the VA, his attorney negotiated a repayment plan with the lender. John made a substantial down payment toward the arrearage and began making monthly payments for the remaining past due balance. The reduction in the balance due paved the way for the Reverse Mortgage Assistance program eligibility and for dismissal of the foreclosure case. The Hardest Hit Fund provided $29,074 to reinstate the mortgage, and will provide an additional $5,925 to the servicer to establish a set-aside account from which the servicer will pay taxes & insurance for approximately 23 months. The servicer agency, H.O.M.E. DuPage, reviewed the homeowners’ budget to make sure they will have the ability to resume paying taxes and insurance when the set-aside is exhausted. John will now pursue the disabled veteran’s exemption with the county assessor, which will reduce his property tax bill. John and his wife of 45 years saved their home and are thankful.
Learn more about the FHA Reverse Mortgage assistance program at https://