What is the foreclosure process for a reverse mortgage?

The foreclosure process for a reverse mortgage in Florida is generally the same as for a traditional mortgage. First, the lender will send the borrower (homeowner) a Notice of Default or Demand for Payment. This notification lets the borrower know they are in arrears on their mortgage payments and have the option to catch up before their home is foreclosed. If the borrower cannot pay back the amount due, the lender will start the foreclosure proceedings. This can involve a court-appointed official, such as a sheriff, auctioning off the property in order to recoup the lender’s loss. The homeowner will receive an official Notice of Trustee’s Sale, letting them know the date, time and place of the foreclosure sale. In order to stop the foreclosure process, the borrower has to pay off the entire amount owed, including any late fees or legal costs, prior to the auction. If the foreclosure sale is not stopped, the buyer at the sale will become the new owner of the property. Once the sale has been completed, the borrower will no longer have rights to the property and will be forced to move out. The lender, in this case the reverse mortgage lender, will recover their losses from the sale.

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What is the foreclosure process for a reverse mortgage?

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