With home values on the decline, there’s been an undeniable increase in insurance and property tax defaults. In order to help mitigate this situation, a reverse mortgage servicer should consider issuing a “homeowner letter” before a pending property tax due date to remind the customer of his or her responsibility to pay property taxes. The servicer should also consider
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issuing a letter after the due date if the taxes remain unpaid at the collector level. With well-constructed, respectful and clear content, a letter campaign can elicit positive responses from homeowners who may be unaware of their tax obligations and create an relationship of mutual trust between the servicer and borrower.
