Written by Dennis Gassoway, as originally published in The Reverse Review.

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.

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