House money chalkboard

The city of Philadelphia is set to consider new legislation that would “prevent the spread of reverse mortgage foreclosures” in the city by “closing a loophole” in the city’s laws that some lenders allegedly exploit to foreclose on reverse mortgage borrowers.

The bill, introduced this week by Philadelphia City Councilwoman Cherelle Parker, stipulates that a reverse mortgage borrower who is in a payment agreement for real estate taxes on their home cannot be considered delinquent on those real estate taxes.

A reverse mortgage allows a homeowner, age 62 or older, to access the equity in their home via a loan, which does not need to be repaid until the last borrower dies or moves from the home.

During that period, the borrowers are…