Reverse Mortgage Difficulties
she has a reverse mortgage on the home. what can i do?
Answer by Happy Gramps
My condolences to your loved ones…………get in touch with the mortgage business and explain what has happened they must be in a position to work some thing out for you
Answer by cool breeze ~
So that essentially take a loan against the house that will have to be paid off. You could sell and pay it off ,keeping profits.
Those loans support the elderly have a little additional cash in their old age but basically screw the living out of inheritances and give the finance organizations a foot in the door to grab it.
you’ll have to read the contract,take it to an attorney too.
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Hi,
If the bank allows a deal to keep the house you would be required to at least pay back what she received. The flip side is they may not offer this deal & pay any balance to you & the take ownership. Read up on this subject & look at all options.
My condolences to you and your family…………Most likely Mom had a HECM Reverse Mortgage as these are the most popular, accounting for over 90% of reverse mortgages and they are also regulated and insured by the Federal Govt. If this is the case you need to contact either the lender or the servicer of the loan. Every month Mom should have received a statement on her reverse and you will find the name of the lender and/or servicer there. You will have an initial 6 month period to satisfy what is owed on the mortgage, if the loan can not be satisfied in that time frame and you can show the lender you are making a good faith attempt at satisfying the mortgage you will be granted an additional 6 months. You options to satisfy the reverse mortgage are quite simple and are really the same if Mom had a conventional mortgage. If you don’t want to keep the home then you can sell it, pay the lender what is owed and any remaining dollars are yours to keep. If you want to keep the home then you can either get a conventional mortgage, home equity line of credit, or if you have the funds available pay what is owed that way.
For disclosure purposes I am a reverse mortgage consultant with 5 years experience and work for one of the top 5 lenders in the country