The city of Philadelphia is one example of a city that is getting very serious about cracking down on people who have failed to pay their real estate taxes. In a time when home owner's are really struggling just to make ends meet, paying their property taxes isn't easy. A lot of people in Philly have become delinquent on these taxes and the city is saying that they need to either pay the money or lose the house.
The reverse mortgage is being recommended as one method of finding the financing to pay for proerty taxes. If someone over the age of 62 has home equity, it is possible to tap into that home equity to get a lump sum payment that will cover the cost of the property taxes.
Unfortunately, many of the low-income home owners in Philadelphia don't seem to be aware of this option. Some are suggesting that the city shoudl take cues from other areas that have created a system of mediation between the city and homeowners who are delinquent with their property taxes. This type of mediation typically leads to increased awareness of options for the home owner which could lead to a better understanding of the use of the reverse mortgage loan for paying property taxes.
The city doesn't currently appear to be particularly interested in this option but senior advocates are hoping that the situation may change. Learn more about this from the Philadelphia Inquirer.
Question of the Day: Should the city of Philadelphia make a push to encourage reverse mortgage lending for seniors who are delinquent on paying property taxes?
