IMMEDIATE ACTION REQUIRED
Protect Your Non-Borrowing Spouse
Right to Remain in Property
Dear Reverse Mortgage Borrower,
In June 2015 HUD announced the *Non-Borrowing Spouseof a reverse mortgage Borrower could remain in his/her property for his/her lifetime if they meet certain requirements.
This notice is to inform you of those requirements, so you can prepare a complete Application Packet now.
- The Non-Borrowing Spouse’s Relationship to the Borrower:
a. Legally married at the time of loan origination and remained married until the time of the Borrower’s death. OR
b. A same sex couple who was in a committed relationship at the time of loan origination, were legally married prior to the death of the borrower AND
c. Continuously resided in the property as his/her primary residence since loan origination and until the death of the Borrower
2. Property and Legal Authority
- The Non-Borrowing Spouse must have aLegal Authority to represent the Borrower’s Estate
- Be on title or able to get on title to the property
- Property Taxes and Hazard Insurance are current
- NO liens on the property other than the reverse mortgage
Application Packet Contents:
- Title to property (deed, quit claim deed, or other legal right to the property)
- Copy of the Borrower’s Death Certificate
- The Non-Borrower and Borrower’s Marriage Certificate or other legal validation of their marriage
- Social Security Card
Contact your Loan Servicer to see if they have any additional requirements.
*A Spouse who did not sign the original reverse mortgage loan documents as a Borrower is a Non-Borrowing Spouse.
TIP: GET A TRUST
A Trust gives a Trustee or Successor Trustee legal authority and the ability to transfer title automatically. A Trust is valid in all 50 States.
This is how the Non-Borrowing Spouse Application process works:
- When the Borrower dies, the Non-Borrowing spouse submits a completed “Application Packet” to the Lender within 120 days of the death of the borrower, no exceptions.
- The Lender reviews and approves the “Application Packet”. The Lender grants a foreclosure deferment and submits the approved application to HUD.
- HUD reviews the application packet and lender documents and accepts the assignment of the loan to HUD for servicing until the death of the Non-Borrowing Spouse.
Non-Borrowing Spouse foreclosures are completely preventable by preparing the “Application Packet” in advance of the Borrower’s death.
Concern: Due to no fault of their own, a Non-Borrowing Spouse will not be able to comply with the six-month absolute deadline because high costs and delays of probate or other legal proceedings needed to obtain the title and/or authority over the property regularly take more than 120 days to complete.