If You Have a Reverse Mortgage, Here Is How to Protect Your Home Right Now

What is happening, in plain words

HUD (the U.S. Department of Housing and Urban Development) has announced a sale of reverse mortgage loans. These are called home equity conversion mortgages, or HECMs. The sale is named HNVLS 2026-1.

The key detail for families: these loans are secured by homes that are still occupied. The people living in those homes are still there. HUD is selling loans that have become due and payable.

According to the Federal Register notice, the sale involves loans with a balance of about $465 million. Bids are scheduled to be accepted on September 1, 2026, and awards are expected around September 3, 2026.

If a reverse mortgage in your household has been called due and payable, this notice matters to you. The good news: you have options, and the help to understand them is free.

Why this matters for you and your home

A reverse mortgage lets older homeowners borrow against their home. It can become due and payable for reasons like the death of the last borrower, moving out, or falling behind on property taxes or insurance.

When a loan is sold, the company that services it can change. Your right to stay in the home and your options do not disappear because of the sale. But you do need to know where you stand.

This is exactly the kind of moment when scammers show up. Be careful. HUD does not charge you to talk about your loan, and a HUD-approved housing counselor is free.

Frequently asked questions

Does this sale mean I have to move out?

Not automatically. A loan sale changes who owns or services the loan, but your options and protections remain. Talk to a free HUD-approved counselor to understand your specific situation.

How much does it cost to get help?

Nothing. HUD-approved housing counseling is free. Never pay a company that promises to save your home for a fee.

I am a surviving spouse. What should I do?

Call your loan servicer and a HUD counselor right away. Surviving spouses may have specific protections. A counselor can explain your options at no cost.

How do I know if a company contacting me is legitimate?

Be cautious of anyone who pressures you or charges upfront fees. Verify by calling HUD at 1-800-569-4287 or using the official HUD counselor tool.