my wife and I are getting a divorce. We have a reverse mortgage on a home in ala and she lives there in the house.

Freddy, Hello and good afternoon. You can have your attorney require her to refinance it into only her name and a suggestion for her would be to escrow. It will only hit your credit if they foreclose on the house due to the taxes being unpaid. She should have a couple of months after the taxes are due to pay them with a penalty. She may be able to call the county and work out a payment plan. Hope this helps.Brad Cahoone - globalhomefinance.com

Unpaid taxes become a lien against the property.. However, when there is a mortgage involved, reverse or standard, the lender can and most likely will pay the taxes to protect their interest in the property.. Then they will send the home owner a bill.. On a standard mortgage, they would raise the payment.. But on a reverse mortgage, they could cut off payments to pay the taxes or send a bill.. if there are no payments paid out on this reverse mortgage, then they would add the unpaid taxes to the loan.. Eventually calling the loan due and payable, however, even if this loan were to foreclose, it should not hurt your credit.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Typically the county will put a lien on your property if the taxes are in default. Normally this will not hit your personal credit however If they keep trying to collect, (possibly with a collection company) it is possible it can eventually hit your credit. Best thing to do is sign the Deed over to her at the execution of your divorce decree to ensure it is being done. Then the county will not come after you personally.

I read thru my last post and part of it seemed vague. Your attorney would ask her to refinance in the final divorce decree. They should also ask you both to sign a warranty deed giving her ownership of the house. You can use that warranty deed to try and ask the credit bureau to remove lates or other negative reporting after she takes sole ownership, but unless she refinances they will report whatever the loan service tells them to. Brad Cahoone - globalhomefinance.com

Most likely the reverse mortgage servicer will pay the delinquent property taxes and add it to the loan balance. Because non-payment of taxes is an event of default under the terms of the loan, they will expect a repayment plan. If the repayment plan is not met or if future taxes or insurance are left unpaid, the servicer may eventually seek a permanent remedy, such as calling the loan due and foreclosing on the property.If your reverse mortgage loan is an FHA loan ("HECM"), it is a non-recourse loan, meaning that you and your wife are not personally responsible for repayment. The lender may foreclose, but they cannot seek claims against you personally. Therefore, foreclosure will not impact your credit rating. It would be best to have an attorney review the borrowing agreement to be sure.

Eventually if not paid it could get posted to your credit. Best to speak to your attorney and see if you can be removed from title and see if you can do refinance to be removed from loan otherwise you are still technically responsible for Items outlined in the documents you signed when you received your reverse mortgage.