Quick Answer
You must pay the property taxes, maintain homeowner's insurance without lapse, keep the home in reasonable repair, occupy it as your primary residence, and return the annual certification — the same obligations your spouse had, with the significant difference that you have no access to loan funds to help you meet them.
- Pay property taxes on time, every year.
- Maintain homeowner's insurance continuously with no gaps.
- Keep the home in reasonable repair.
- Occupy the home as your primary residence.
- Return the annual certification promptly.
- You have no access to loan funds to help meet these obligations.
Key Facts
| Topic | Key Fact |
|---|---|
| Property taxes | Your responsibility unless a set-aside exists |
| Homeowner's insurance | Must be maintained without lapse |
| HOA dues | Your responsibility where applicable |
| Property condition | Reasonable repair; servicer may inspect |
| Occupancy | Primary residence; twelve-month absence rule applies |
| Annual certification | Must be returned to the servicer |
| Access to funds | None — the credit line is unavailable |
| Leading failure cause | Property charge delinquency |
Detailed Explanation
Your obligations are identical to what your spouse's were, which sounds manageable until you account for the difference in resources. Your spouse could draw from the credit line to cover a property tax bill or an insurance premium. You cannot. The deferral protects your right to remain in the home; it gives you no financial assistance in doing so, and for many surviving spouses that gap is the real problem.
Property taxes and homeowner's insurance are where deferrals fail. This is the leading cause of reverse mortgage default generally, and it is more acute for surviving spouses because household income typically dropped when the borrower died. If a Life Expectancy Set-Aside was established at origination, the servicer pays these from the set-aside and you do not have to manage it. If there was no set-aside, you are writing the checks, and a missed payment starts a process that can end your deferral.
Occupancy operates the same way it did for your spouse. The home must be your primary residence, and absence exceeding twelve consecutive months ends the deferral. Hospitalization, rehabilitation, and extended visits with family are permitted within that window. A permanent move to assisted living is not, and families should track that date deliberately rather than discovering it in a servicer notice.
Maintenance is the obligation people forget. The home must be kept in reasonable repair, and servicers may inspect. Deferred maintenance that accumulates over years — a failing roof, water intrusion, structural issues — can become a compliance problem separate from any payment issue. If maintenance costs have become unmanageable on a reduced income, that is worth raising with a CRMP, because it may indicate that pursuing your own reverse mortgage or selling is the more realistic path.
Jay Zayer, CRMP — 18 Years Experience
The hardest part of the deferral is that it hands someone all the responsibilities and none of the resources. She has to pay taxes and insurance on a house she cannot borrow against, on income that just dropped by a third. When I talk to a widow in this position, I am honest that the deferral may not be sustainable, and we look at whether her own reverse mortgage or a sale makes more sense. Staying in a house you cannot afford to maintain is not a solution — it is a slower version of the same problem.
Who This Is Right For
This may be a good fit if:
- Surviving non-borrowing spouses who need to understand what maintaining the deferral requires
- Family members assessing whether a widowed parent can realistically sustain the obligations
This may NOT be the right fit if:
- Co-borrowers, who retain access to loan funds to help meet the same obligations
Common Misconception
Myth: A surviving spouse in the deferral period has fewer obligations than the original borrower.
Fact: The obligations are identical — property taxes, insurance, maintenance, occupancy, and annual certification. The difference is that a non-borrowing spouse has no access to loan funds to help meet them, which makes the same obligations substantially harder to sustain.
Source: HUD Mortgagee Letter 2015-15 — deferral period requirements
Authoritative Sources
People Also Ask
Do I have to pay the property taxes as a non-borrowing spouse?
Yes, unless a Life Expectancy Set-Aside was established at origination, in which case the servicer pays them from the set-aside.
Can I draw from the credit line to pay my property taxes?
No. A non-borrowing spouse has no access to remaining credit line funds during the deferral period.
What happens if I cannot afford the obligations?
Contact the servicer and a CRMP promptly. Options may include pursuing your own reverse mortgage if you are 62 or older and own the property, or selling. Waiting until delinquency begins reduces your options.