Reverse Mortgage and Senior Property Tax Relief

30 Pages Posted: 25 May 2018 Last revised: 10 Sep 2018

See all articles by Joshua Miller

Joshua Miller

U.S. Department of Housing and Urban Development (HUD)

Silda Nikaj

University of Illinois at Chicago

Jin Man Lee

DePaul University

Date Written: September 5, 2018

Abstract

Home Equity Conversion Mortgage (HECM) loans experience high rates of property tax default (IFE, 2016; CFPB, 2012). Given tax burden is predictive of default (Moulton, et. al., 2015), it is important for HECM participants to take advantage of available property tax relief programs. To examine participation in property tax relief programs we match loan-level HECM origination records with local administrative tax records for properties in Chicago, IL. We find that nearly 40 percent of eligible HECM borrowers do not participate in a senior tax relief program for which they meet all eligibility requirements. Further, we find that senior tax relief participation is associated with a reduced probability of property tax default of 60 percent.

Keywords: Reverse Mortgage; Property Tax; Foreclosure

JEL Classification: G21; H71

Suggested Citation

Miller, Joshua and Nikaj, Silda and Lee, Jin Man, Reverse Mortgage and Senior Property Tax Relief (September 5, 2018). Available at SSRN: https://ssrn.com/abstract=3178784 or http://dx.doi.org/10.2139/ssrn.3178784

Joshua Miller (Contact Author)

U.S. Department of Housing and Urban Development (HUD) ( email )

451 Seventh Street S.W.
DC, WA 20410
United States

Silda Nikaj

University of Illinois at Chicago ( email )

1200 W Harrison St
Chicago, IL 60607
United States

Jin Man Lee

DePaul University ( email )

1 E Jackson Blvd
Chicago, IL 60604
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
54
Abstract Views
480
rank
411,844
PlumX Metrics