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Can someone obtain a new mortgage which includes a person that is deceased?

Posted on: 07th Sep, 2010 03:28 pm
I know this sounds weird but my Dad dies in 10/2003. In May, 2006 my Mom got a reverse mortgage. My Dad is also listed on the mortgage as a borrowed. The attorney for the lender that prepared the mortgage knew that my Dad was dead. Is this a normal procedure?
Also, I remember that when I got any of my mortgages I had to initial every page and I know it was notarized. This crazy reverse mortgage that my Mom got is 12 pages long and has no initials. Her signature was not notarized. It was witnessed by the lender's attorney, who all drafted the document.
We knew nothing about this until my Mom passed away in 9/2009.
Aren't there rules in NJ that:
1. Dead people can't take out mortgages
2. Every page on a mortgage document be initialed by
the borrower.
3. The mortgage must be notarized
4. The preparer of the doc cannot also be the only
witness to the signature

Please help. I looked at Mom's signature and it is so different from anything I have ever seen her sign. This is all weird. She did however receive the money from the reverse mortgage. I am not questioning the debt. I am questioning the procedures that this attorney took. It just doesn't feel legal to me with regard to how all of this took place.
hi rolahey,

if a person is dead, then his name cannot be mentioned in the mortgage docs. i guess the attorney did not take the rights steps in this regard. however, your mother has the debt in her name and the property has been used as a collateral for the loan. you'll have to refinance the mortgage and pay off the dues. if you don't do so, the lender will foreclose the property to recover the dues.

thanks
Posted on: 07th Sep, 2010 08:33 pm
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