47-30-108 - Amount owed by borrower when loan is due Enforcement of debt.

47-30-108. Amount owed by borrower when loan is due Enforcement of debt.

(a)  When a reverse mortgage loan, other than a Fannie Mae Reverse Mortgage Loan, becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house, then the amount owed by the borrower shall not be greater than:

     (1)  The fair market value of the house, minus sale costs; or

     (2)  The outstanding balance of the loan,

whichever amount is less.

(b)  If the borrower mortgaged less than one hundred percent (100%) of the full value of the house, the amount owed by the borrower shall not be greater than:

     (1)  The outstanding balance of the loan; or

     (2)  The percentage of the fair market value, minus sale costs, as provided in the contract;

whichever amount is less.

(c)  The lender shall enforce the debt only through the sale of the property and shall not obtain a deficiency judgment against the borrower.

[Acts 1993, ch. 410, § 9; 1997, ch. 286, § 7.]