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HB17-1026

Reverse Mortgage Repayment When Home Uninhabitable

Concerning the suspension of a borrower's obligation to repay a reverse mortgage when a force majeure renders the subject property uninhabitable as a principal residence.
Session:
2017 Regular Session
Subject:

Wildfire Matters Review Committee.

Under current law, the borrower in a reverse mortgage transaction is relieved of the obligation to occupy the subject property as a principal residence if the borrower is temporarily absent for up to 60 days or, if the property is adequately secured, up to one year. The bill adds a third exception to the principal-residence requirement to cover situations in which a natural disaster or other serious incident beyond the borrower's control renders the property uninhabitable. The maximum time allowable for a temporary absence under these circumstances is 5 years.


(Note: This summary applies to this bill as introduced.)

Status

Introduced
Under Consideration

Bill Text

Upcoming Schedule