- When a reverse mortgage loan, other than a Fannie Mae Reverse Mortgage Loan, becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house, then the amount owed by the borrower shall not be greater than:
- The fair market value of the house, minus sale costs; or
- The outstanding balance of the loan,
whichever amount is less.
- If the borrower mortgaged less than one hundred percent (100%) of the full value of the house, the amount owed by the borrower shall not be greater than:
- The outstanding balance of the loan; or
- The percentage of the fair market value, minus sale costs, as provided in the contract;
whichever amount is less.
- The lender shall enforce the debt only through the sale of the property and shall not obtain a deficiency judgment against the borrower.