While a reverse mortgage can provide seniors with an equity credit line while eliminating their monthly payments, in many states they still have to be able to pay property taxes and other assorted expenses related to their properties. However, twelve states (Massachusetts, California, Michigan, Oregon, Minnesota, Idaho, Colorado, Wyoming, Illinois, Washington, Utah and Tennessee) allow seniors with reverse mortgages the flexibility to defer their property tax payments. However, there are a lot of limitations, restrictions and fine print to consider in some of these states, so be sure to work with your lender and/or tax pros to make sure you know what the specific rules for your case are.
- Reverse mortgage products give seniors the ability to stop their monthly forward mortgage payments and at the same time give them access to a line of credit.
- In order for seniors to qualify for the mortgage deferment program which is featured by 12 states, they have to attain a minimum age of 61 to 65 years.
- Some issues have been recorded with the deferment program for seniors. In Oregon in 2011, an enacted stipulation made many seniors not to qualify for the deferment program.
“However, some states have programs that allow seniors to defer their property tax payments in order to allow more financial flexibility for Americans on a fixed income, which can also include veterans, the disabled and those who have lost a spouse.”