Residence in the Property
- In order to ensure housing security for the elderly, HF Korean Home Pension (Reverse Mortgage) program guarantees users’ rights to the lifetime residence in their house under the terms of the program.
- To be noted, when both of subscribers and their spouses found not to have lived in the collateral house longer than a year, it may lead to the termination of their home pension contract.
Exemptions
- In the following cases, the Home Pension contract is not terminated even when its users have not lived in the collateral house longer than a year.
Caveat: To be exempted, subscribers or their spouses should give a prior written notice to HF on the grounds for exemptions, which are to be confirmed and accepted by HF as valid.
| Grounds for Exemption | Description |
|---|---|
| Hospitalization or admission to a nursing facility | Disease treatment, physical and mental recuperation, etc. |
| Long-term stay in houses other than the collateral property | As needed to be supported and cared by their offspring |
| Quarantine, internment, or imprisonment | As unavoidable under an order by government authority |
| Others | Special personal circumstances acknowledged and accepted by HF as necessary. |
Legal grounds for the Exemption
Grounds for termination of the Home Pension (Reverse Mortgage) program (See Article 28-2 of the Enforcement Decree of the Korea Housing Finance Corporation Act)
- When both the Home Pension user and his/her spouse are deceased
- When the spouse of the Home Pension user has not completed a title transfer registration regarding the collateralized house and assumes the Home Pension loan via the corresponding financial institution within six months from the death of the Home Pension user
- When the Home Pension user and his/her spouse move from the collateralized house to another place (excluding a change of the collateral house)
- When the Home Pension user and his/her spouse do not reside in the collateralized house for a continuous period of no less than one year; excluding those cases where they fail to live in the collateralized house for any reason, including hospitalization, as determined by the President of the Korea Housing Finance Corporation and posted on its webpage
- When the Home Pension user loses ownership of the collateralized house
- When it is expected that the principal and interest of a Home Pension loan will exceed the maximum mortgage value, but the Home Pension user fails to comply with a request from a financial institution or KHFC to change the maximum mortgage value
- When there arises a certain event determined by the Housing Finance Committee other than those events as set forth in the foregoing paragraphs 1 through 6