Reverse mortgages, which allow older adults to convert some of the equity in their homes into cash, have been a lifeline for many house-rich, cash-poor seniors struggling to get by.

But now, with a growing number of reverse mortgages falling into default, these retirees could end up losing their homes.

As the name implies, reverse mortgages work the opposite of traditional mortgages. Instead of the homeowner making monthly payments to the lender, the lender pays the homeowner, in a lump sum or a set amount each month.

None of the money – which might be used for medical bills, home repairs or day-to-day living expenses for those 62 or older – has to be repaid as long as the borrower remains in the home.

Still, the loan can end up in default if the borrower doesn’t pay property taxes and homeowners insurance.

The U.S. Department of Housing and Urban Development, which insures virtually all reverse mortgages under its Home Equity Conversion Mortgage program, says it is in the process of compiling official statistics and can’t say for sure how many reverse mortgages are in default.

But the industry estimates there are about 30,000 such loans, representing 5 percent of the 550,000 outstanding reverse mortgages nationwide. Although the number of defaults is relatively small, a government study suggests they are on the rise.

So far there have not been any foreclosures, HUD and industry experts say, meaning no seniors have been evicted from their homes. An inspector general’s report said HUD, which would have to approve the foreclosure process, has been looking the other way because it doesn’t want to foreclose on senior citizens.