General Mortgage Knowledge · 20% of the SAFE exammedium
Correct answer: The loan becomes due and payable because the borrower has been absent for more than 12 consecutive months
Moving out of the home for 12 or more consecutive months is a repayment trigger for a HECM. At 13 months, the threshold is exceeded and the loan becomes due and payable. Other repayment triggers include: death of the last surviving borrower (or eligible non-borrowing spouse), sale of the home, failure to maintain the property, and failure to pay property taxes and homeowners insurance. The 12-month occupancy requirement ensures the HECM serves as housing for the borrower, not an investment vehicle.
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