Oregon Again Considers Reverse Mortgage Borrowers and Tax Deferrals

After going back and forth about whether reverse mortgages can qualify for Oregon’s senior tax deferral program, lawmakers are once again revisiting the issue, according to a Statesman Journal article. 

In 2011, the state made headway toward eliminating the tax deferral option for seniors who have reverse mortgage loans. However, outcry ensued regarding those reverse mortgage borrowers already in the program who would suddenly lose the benefits they had long been able to receive. 

Now the state has taken another look at the problem and potential solution. The Statesman Journal writes

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Oregon lawmakers, for the third time in three years, will consider changes to a state program that advances property taxes for some homeowners who are 62 and older or who have disabilities.

… the 2011 overhaul barred participation by homeowners with reverse mortgages, which do not ensure that the state can recoup its costs and interest. That restriction had the effect of cutting homeowners from the program.

After an outcry by some homeowners, who ended up organizing as a group, lawmakers in 2012 agreed to extend state payments to about 1,700 of those homeowners for two years. They paid the taxes for 2011 and 2012.

Now the House Revenue Committee will consider another two-year extension in House Bill 2489, and further program changes in House Bill 2510.

House Bill 2513 would freeze assessed valuations of homes for some seniors and people with disabilities…

Read the full article

Written by Elizabeth Ecker

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  • We hope that the state of Oregon will work with those reverse mortgage holders who had budgeted and relied on those taxes being deferred at the time they obtained their reverse mortgages.

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