Posted on: 07th Jun, 2011 08:42 am
have negative cash flow reverse mortgage, can collection agency attach lien on my house?
one has, for under $6K, another is trying.
one has, for under $6K, another is trying.
Welcome Dot,
If the debt collector files a lawsuit in the court and gets a judgment against you, then he will be able to place a lien on your property.
If the debt collector files a lawsuit in the court and gets a judgment against you, then he will be able to place a lien on your property.
Absolutely, creditors can file their liens. Whether they ultimately get paid or not is dependent upon the value of your home when the time comes for it to be sold.
A Reverse Mortgage is just like a traditional conforming mortgage in that regard, and "yes", a Lien can be placed against Title. But, as George indicated, the difference with a Reverse Mortgage is the lien may never get paid with a Reverse Mortgage. It depends on how much equity is left in the property when the Reverse Mortgage is due-and-payable. In your case, since you're upside down with the Reverse Mortgage, it's highly unlikely the lien will ever be paid.
And since we're on the subject, you and/or your heirs will never have to pay the negative amount of the Reverse Mortgage either. When it's time to pay back the Lender, you'll let them have the house, and the Lender will file a claim against FHA's insurance program to recover the negative amount. You paid 2% for FHA's insurance premium when your Reverse Mortgage was originated, and .5% per year against the outstanding balance since then, and you've benefited from the insurance program because you and your heirs will never have to pay back the negative amount. I hope you're receiving the monthly check option. That'd be nice because you'd still be receiving a tax free check, even though the Reverse Mortgage is negative.
And since we're on the subject, you and/or your heirs will never have to pay the negative amount of the Reverse Mortgage either. When it's time to pay back the Lender, you'll let them have the house, and the Lender will file a claim against FHA's insurance program to recover the negative amount. You paid 2% for FHA's insurance premium when your Reverse Mortgage was originated, and .5% per year against the outstanding balance since then, and you've benefited from the insurance program because you and your heirs will never have to pay back the negative amount. I hope you're receiving the monthly check option. That'd be nice because you'd still be receiving a tax free check, even though the Reverse Mortgage is negative.
