State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-267

§53‑267.  Repayment upon borrower's default.

A reverse mortgage loancontract may provide for a borrower's default, thereby triggering earlyrepayment of the loan, based only upon one or more of the following terms andconditions:

(1)        The borrower fails tomaintain the residence as required by the contract.

(2)        The borrower sellsor otherwise conveys title to the home to a third party.

(3)        The borrower diesand the home is not the principal residence of the surviving borrower.

(4)        The home is not theprincipal residence of at least one of the borrowers for a period of 12consecutive months for reasons of physical or mental illness.

(5)        For reasons otherthan physical or mental illness, the home ceases to be the principal residenceof the borrower for a period of 180 consecutive days and is not the principalresidence of another borrower under the loan, without prior written permissionfrom the lender.

(6)        The borrower failsto pay property taxes, insurance premiums, and assessments under G.S. 53‑261.(1991, c. 546, s. 1; 1995, c. 115, s. 1.)