Are reverse mortgages available if there is a tax lien?

Odette asked...

Can you get a reverse mortgage if there is a tax lien on the property?

Expert Answer

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for Caring.com.

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.