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What are the disadvantages of LESA? Although LESAs are established to ensure payment of property taxes and homeowners insurance, its possible that the amount set aside could run dry if you exceed your life expectancy, say, you live to be 92 when your LESA was based on a life expectancy of 87.
When reverse mortgage borrowers make payments, theyre issued a 1098 statement, typically generated when a reverse mortgage loan is repaid partial or in full.
If the balance owed on the loan is more than the home is worth, your heirs wont have to pay the difference. If your heirs sell the home, the lender will take the proceeds from the sale as payment on the loan, and the FHA insurance will cover any remaining loan balance.
To qualify for a partial LESA, a borrower demonstrates a willingness to meet financial obligations but does not meet residual income requirements.
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