COVID-19: Can mortgagees advance property taxes on behalf of HECM borrowers, who are responsible for paying their own property taxes, based on the original due date of the HECM where the taxing authority has extended the deadline for paying property taxes without a penalty?

No.  Mortgagees may only advance property taxes on behalf of HECM borrowers, who are responsible for paying their own property taxes, when the borrower has not paid their property taxes prior to the HECM due date. However, if the taxing authority extends the due date for property taxes, the date upon which the mortgagee can advance property taxes on behalf of a HECM borrower is also extended if the HECM is not due and payable.
 
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All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05534