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Reverse Mortgage Occupancy Issues? Clarity of the Unknown.


Many Americans have encountered AAG’s spokesperson Tom Selleck and the reverse mortgage advertisement on television.


What many Americans are not aware of is the pitfalls and traps that accompany reverse mortgages.

Reverse Mortgage Traps


Under the terms of the Loan and Mortgage, the borrower must pay the taxes, insurance, home maintenance, and other property charges.


Additionally, the home must continue to be occupied as the borrower’s principal residence. This ”occupancy” requirement is what I want to highlight.


Wrongful Foreclosure for Non-Occupancy


Generally speaking, the servicer of the mortgage - most of which are serviced by Celink - requests an Annual Certificate of Occupancy to be signed by the borrower. As one can gather from the numerous complaints there are a multitude of defects with this process. The biggest issue: Neither the Loan or the Mortgage documents make any mention of a requirement to return an Annual Certificate of Occupancy. Instead, the only requirement is that the borrower resident, occupy, and maintain the property as his/her primary residence. Nothing more.


At The Town Law, we have handled cases involving this claim of non-occupancy when - in fact - the borrower was served with the foreclosure action at the same property they were alleged to not reside at. We have been able to not only defend the borrower against the wrongful action but also bring claims on the borrower’s behalf against the Mortgage holder.


I’m being foreclosed on the basis of non-occupancy — but I reside at the Property...what should I do?


At The Town Law, we understand just how stressful facing a foreclosure action can be. In particular, we specialize in the handling of wrongful reverse mortgage foreclosure cases in New Jersey and Pennsylvania. If you have been wrongfully foreclosed upon by the reverse mortgage company, are currently being wrongfully foreclosed upon by the reverse mortgage company, or had successfully defended against a wrongful foreclosure action, we would love to talk to you and see how we can assist. Contact our firm today for a free consultation. Our staff of experienced attorneys is dedicated to the best outcomes for all of our clients.

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