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Walking away from reverse mortgage

Posted on: 03rd Apr, 2011 05:15 pm
We have used up our reverse mortage for personal reasons and need to move near our children.

Will our credit be ruined if we walk away?
Will we be obligated to pay anything back?
Do we have to sell the home rather than walk away?
Can they make us pay anything back?
Thank you - yes, we definitely think it is a scam. The biggest problem is that the parents waited so long to tell us. Going to the "bank" today. Thank you again.
Posted on: 22nd Jan, 2013 05:32 am
Many reverse mortgage loans do not yield cash to the homeowner at closing. A common example is in the case where the homeowner just wants to pay off an existing mortgage loan to eliminate the monthly payment. Another example is when a reverse mortgage is used to purchase a property.

I would strongly suggest that you contact an attorney that specializes in reverse mortgages so he can determine if there were any violations commited by the lender that would allow you to negate the transaction.
Posted on: 22nd Jan, 2013 08:31 am
The only money that "changed hands" was from the equity in the home to the lender to cover fees. That's it. Then my parents received a letter stating their equity had dissolved due to a downward trend in the housing market. An attorney is indeed needed. We are attempting to handle this hundreds of miles away from them and they are scared and rarely will answer the phone. I am amazed at how difficult it is to help my elderly parents legally, but how easy it was for someone to "take" them. I know they ultimately signed the contract, but it was to get the group of "bankers" from JB Nutter to leave their home...for good. Just a sad situation. Thank you again.
Posted on: 22nd Jan, 2013 02:29 pm
Hi Guest,

I can understand what you must be going through. As jhelwell has said, it will be better to get in touch with the attorney in this regard. The attorney may let you know whether or not the lender scammed your parents.

Thanks
Posted on: 22nd Jan, 2013 09:41 pm
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