Programs using the federal Hardest Hit Fund® are available in some states to assist senior homeowners with reverse mortgages who are in default and may be facing foreclosure. Take a look at what's available in participating states. These resources are specifically for reverse mortgage homeowners who need assistance due to nonpayment of expenses like property taxes, homeowner's insurance, and homeowner's and/or condo association dues.
Keep Your Home California
California’s Reverse Mortgage Assistance Pilot Program (RevMAP) provides up to $25,000 to help qualifying seniors pay property expenses associated with their Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) loan. Eligibility is based on hardship, property, and mortgage requirements including:
- Reverse mortgage loan must be an FHA HECM that’s serviced by a HUD-approved HECM servicer who is participating in RevMAP;
- Homeowner must have suffered an involuntary hardship and meet low and moderate area income limits ;
- Property must be the homeowner’s principal residence, located in California;
- Current balance of the FHA HECM loan must not be greater than $625,500;
- Property securing the loan must not be abandoned, vacant or condemned; and
- Homeowner must have adequate income to sustain required property expense payments going forward.
Eligible homeowners will receive an interest free loan to repay their mortgage servicer for delinquent property expenses paid on their behalf. Funds may also be used to pay up to 12 months of estimated property expenses in advance. The loan requires no payments and will be forgiven after two years, provided you don’t sell or refinance the property and you satisfy all loan terms.
To apply for RevMAP, contact your reverse mortgage servicer. You can also visit KeepYourHomeCalifornia.org or call (888) 954-5337 for more information about the program.
Florida ELMORE Program
The Elderly Mortgage Assistance Program (ELMORE) offers eligible homeowners up to $25,000 to pay for property-related expenses through a forgivable two-year loan. You may be eligible for assistance if you meet these specific income, hardship and residency requirements:
- Have a reverse mortgage secured by a property in Florida;
- Are a legal U.S. citizen or lawful permanent resident;
- Reside in your house as your primary residence;
- Have income lower than 140% of the average median income in your area;
- Have fallen behind on property-related expenses due to a hardship such as medical expenses, reduction in income, home repairs, divorce, disability, unemployment or under employment, or other challenges; and
- Can afford property-related payments once you’re caught up through this program.
There is no interest on the loan and there are no payments to make provided you do not sell the property within two years of the date of this loan and you have satisfied all loan terms. If you’ve already received assistance through another Florida Hardest-Hit Fund Program, your total assistance cannot exceed $50,000.
For more information on ELMORE, please call toll-free (855) 414-3328 or visit FloridaELMORE.org . You can also contact your reverse mortgage servicer who can further assist. Your servicer’s contact information should be on your loan paperwork or on the periodic statements or notices you receive regarding your reverse mortgage loan. For a list of Fannie Mae reverse mortgage servicers, click the Reverse Mortgage Servicers tab section above.
Step Forward Michigan
The Step Forward Program provides up to $30,000 in assistance to homeowners in Michigan who have fallen behind on their property-related expenses. To be eligible homeowners must:
- Occupy the home as your primary residence;
- Have endured an eligible involuntary hardship that caused the reverse mortgage default, such as job loss, reduction of gross income, death, divorce or disability;
- Be able to sustain payments for future property-related expenses, such as property taxes, homeowners insurance, and condo or homeowners association fees (e.g., the future payments must be 45% or less of your current gross household income); and
- Have limited liquid cash reserves. (Your counselor will go over this with you.)
Assistance is provided as an interest-free, forgivable loan that requires no monthly payments. The principal amount is forgiven over a five-year term at 20% per year if the homeowner continues to occupy the home.
For more information on Step Forward Michigan, call 866-946-7432 or visit StepForwardMichigan.org . You can also contact your reverse mortgage servicer for assistance.