Can you get a reverse mortgage if there is a tax lien on the property?
Expert Answer by Barbara Steinberg
Barbara Steinberg is a certified financial planner, a certified estate advisor, and founder of BSA Advisors, a financial planning firm for senior citizens.
When an application for a reverse mortgage is processed, the lender will immediately order a title search. Any tax liens will be uncovered by the title company and reported to the lender. The lender will then require that you pay off the tax lien with the proceeds from the reverse mortgage at the closing. This applies for all loans which are secured by the residence, which includes mortgages, home equity loans and lines of credit.
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