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Your reverse mortgage after a
natural disaster
A guide for borrowers with
a Home Equity Conversion
Mortgage (HECM), the most
common type of reverse
mortgage loan.
After a natural disaster you may
experience damage to your home,
unexpected expenses, and a
sudden loss of income.
Follow this guide to understand how
§ Take pictures or videos of the damage
you can meet your reverse mortgage
to help with your claim. Do this before
obligations while recovering from a
and after any repairs are performed.
natural disaster.
§ Apply for nancial assistance with
the Federal Emergency Management
Obligation 1: Keeping your home
Agency (FEMA), if your home is in a
in good repair
Presidentially-Declared Major Disaster
If your house was damaged by a natural
Area (PDMDA). You can nd out if you
disaster:
qualify and apply for assistance at,
DisasterAssistance.gov or call (800)
§ File a claim with your insurance
621-3362 or (800) 462-7585 (TTY).
company as soon as possible—some
policies may require you to le within a
§ Contact your state emergency
certain period after a disaster.
management ofce to nd out what
other assistance is available. Go to
§ Notify your lender or servicer of the
fema.gov/emergency-management-
damage by certied mail. Keep a copy
agencies to locate your state ofce.
of the letter.
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Avoid home repair scams
§ Beware of contractors going
door-to-door. Do not feel
pressured into making a decision
right away.
§ Get estimates from several
contractors on what they think
the repairs will cost.
§ Make sure written contracts
match any verbal promises made.
§ FEMA can provide additional
information on home repair scams
and make referrals on where you
can report instances of fraud.
Obligation 2: Occupy your home
as your principal residence
If you cannot live in your home because
it was damaged by a natural disaster:
§ Send written notice to your lender or
servicer that you plan to return when
your home is repaired. Send your
notice by certied mail.
§ Provide your lender or servicer up-
to-date-contact information such
as a forwarding address, email, and
telephone number.
Obligation 3: Pay your property
charges on time
If you cannot pay your property charges
after a natural disaster:
§ Check with your local tax authority
to see if you can delay property tax
ling deadlines, pay your taxes in
installments, or waive penalty fees. If
you enter into one of these options, let
your servicer know.
§ Reach out to Area Agencies on Aging
(AAA) to nd state and local assistance
programs that may help you pay for
missed property charges. To nd the
nearest AAA, call (800) 677-1116 or
visit eldercare.acl.gov.
§ If you miss a payment, contact your
lender or servicer as soon as possible.
Your lender or servicer may pay your
property charges by
using money from your monthly loan
payout or line of credit.
§ If your loan is in default, ask your lender
or servicer what options are available.
See if your lender or servicer has special
“hardship” options or repayment plan
options for disaster victims.
§ Ask your servicer for an “at-risk
extension.” This may help you delay
a foreclosure if you are 80 years or
older and are experiencing critical
circumstances (such as long-term
disability or terminal illness).
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How to deal with your
insurance company
§ If your insurance policy covers the
damage, your insurance company
will issue a check to the lender
as the payee or to you and the
lender jointly. If you receive a joint
check, contact your lender or
servicer for instructions on where
to forward it.
§ If the estimated cost of repairs
is greater than your insurance
coverage, you can use money
from your homeowners
insurance and your own money
to complete the necessary
repairs or pay off the reverse
mortgage loan.
§ If you cannot pay your remaining
loan balance, work with your
lender or servicer to avoid
foreclosure. Consider seeking
the advice of a housing counselor
or attorney.
§ If your insurance company
denies coverage or does not
pay you what you believe you
are owed, ask the company to
provide in writing the reasons
for denial and if there is an
appeals process.
§ If you believe your insurance
company wrongfully denied you
coverage, consider seeking the
advice of an attorney or ling a
claim with your state insurance
department or commissioner.
If you are facing foreclosure
§ Take immediate action. Do not ignore it.
§ Check with your lender or servicer to
see if the U.S. Department of Housing
and Urban Development (HUD)
extended the foreclosure timeline for
your area. Sometimes HUD requires
foreclosure delays in Presidentially-
Declared Major Disaster Areas.
§ If HUD extended the foreclosure
timeline in your area, try to bring
your account up to date before the
foreclosure resumes. You can nd out
when it resumes by checking HUD’s
website, contacting your lender or
servicer, or calling a HUD-approved
housing counseling agency.
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Where to get help
§ Consult an attorney. If you need help
nding an attorney, visit your local or
state bar association’s website.
§ Talk to a housing counselor. HUD-
approved housing counseling
agencies offer free or low-cost expert
assistance. You can nd a housing
counselor by going to hud.gov or
calling (800) 569-4287.
§ Submit a complaint with the Consumer
Financial Protection Bureau if you
are having problems with your
lender or servicer, by going to
consumernance.gov or by calling toll-
free (855) 411-CFPB (2372).
§ For more information on disaster-
related issues to go: cfpb.gov/recover.
About us
The Consumer Financial Protection
Bureau regulates the offering and
provision of consumer nancial
products and services under the
federal consumer nancial laws,
and educates and empowers
consumers to make better
informed nancial decisions.
Learn more at
consumernance.gov
Connect with us
Submit a complaint
consumernance.gov/complaint
Tell your story
consumernance.gov/your-story
Get answers to money questions
consumernance.gov/askcfpb
Share your thoughts
facebook.com/cfpb
twitter.com/cfpb
9/2019
