Where a taxing authority has deferred the payment of property taxes, i.e., liability for taxes remains, but payment is deferred until a certain point in the future, such taxes may be excluded from the financial assessment provided:
- that the deferral period will be in place until the death of the Borrower or the sale of the property, whichever occurs first;
- that a lien senior to the HECM first and second mortgages will not be created upon the termination of the deferral period; and
- documentation on the deferral is placed in the case binder; and
- the Borrower shall not participate in a real estate tax deferral program or permit any liens to be recorded against the property, unless such liens are subordinate to the insured mortgage and any second mortgage held by the Secretary.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 2.27 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee