If I had a reverse mortgage and defaulted on credit card debt....

Asked by Ana, 76132 Fri Aug 8, 2008

Can the FHA call the reverse loan if I default on credit card debt or have medical collections?

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Rebeccatrulia’s answer
Rebeccatrulia, Renter, United Amigos, Mesa, AZ
Tue May 14, 2013
The loan is safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). This loan was signed into law as a Government-Insured product by Ronald Reagan in 1988 and since its inception, it has helped hundreds of thousands of senior homeowners safely access the equity in their homes to help them better enjoy their retirement year.You can get any more answer by reverse mortgage lenders direct.

8 votes
Monir Mamoun, Agent, Denville, NJ
Thu Oct 14, 2010
No, those debts are "unsecured" debts. So they will not result in the loss of your home or disruption to the mortgage. But double check with an attorney if you have any doubt. Try a free initial consultation with a lawyer, or a quick phone consultation.
0 votes
Greg Johnson, , 95355
Wed Oct 8, 2008
No. Your loan cannot be recalled for credit card debt or medical collections of any sort.
Your consumer debt does not weigh any influence on your reverse mortgage. This is one main reason why the FHA HECM loan is such a safe tool for the senior "aging in place".
Take care, and I hope things go well for you in retirement.
0 votes
Debt Free Da…, , 85260
Sat Aug 16, 2008
You may want to consider doing a debt settlement program.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Aug 9, 2008

This is a question best refered to an attorney.

Good luck
0 votes
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