A HECM loan must be repaid in full when you die or sell the home. The loan also becomes due and payable if:
You do not pay property taxes or hazard insurance or violate other obligations. You permanently move to a new principal residence.
There may be two instances:
(1) Where a borrower is in default in respect of any payment on a loan, the entire amount of the balance outstanding on the loan shall, at the option of the bank, become due and payable.
(2) Where a borrower is convicted of an offence under the Act, the entire amount of the balance outstanding on a loan shall become due and payable.