Options to Avoid Foreclosure

Even if you are in default or have already received a foreclosure notice, options may still be available.

"I’m in default on my reverse mortgage,
what are my options?"

Contact your reverse mortgage servicer (the company servicing your reverse mortgage) and explain your situation. Depending on your circumstances, your servicer may be able to help you repay your debts or gracefully exit your home. Your servicer may also connect you with a HUD-approved counseling agency for additional assistance.

Your reverse mortgage servicer can help you understand your options. These may include:

Repayment Plan Used to pay back property-related expenses paid on your behalf by your reverse mortgage servicer. The amount due can be spread up to 60 months.
Free Counseling From a HUD-Approved Counseling Agency Your counselor will review your financial situation, may assist you in balancing your budget or finding resources to help you (i.e., finding you sources of income or financial assistance), and work with your servicer to resolve your situation. Your servicer can provide you with more details.
Refinancing If you have equity in your home, you may qualify for a new reverse mortgage to pay off your existing reverse mortgage plus any past-due property-related expenses.
Selling Your Home You may sell your home to anyone, including your heirs, and use the sale proceeds to pay off your reverse mortgage loan.
Paying Off Your Reverse Mortgage If you want to stay in your home, you or an heir may decide to pay off the reverse mortgage by taking out a new loan or finding other financial resources.
Deed-in-Lieu of Foreclosure To avoid foreclosure and eviction, you may decide to complete a Deed-in-Lieu of Foreclosure. This is a voluntary transfer of your property to the owner of your reverse mortgage in exchange for a release from your reverse mortgage obligations. Some relocation assistance may be available to help you gracefully exit your home.
Foreclosure If your loan goes into default, it may become due and payable and the servicer may begin foreclosure proceedings. A foreclosure is a legal process where the owner of your reverse mortgage obtains ownership of your property. Even if you’ve received a foreclosure notice, you may still be able to avoid foreclosure by pursuing one of the options noted above.

Get help

Learn about what help is available and who to contact.


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Learn about your responsibilities

Understand your reverse mortgage responsibilities.

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Frequently asked questions

Find the answers to common questions concerning your reverse mortgage.

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