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How to protect this home?

Posted on: 03rd Dec, 2010 09:12 am
my wife left me after nearly 40 years together.
we have a first and second mortgage on a home in wa state. at the time she left, we only owed on the two loans, both with b of a, and have no other bills. she has property in co that was willed to her, and because i am on dissability and a fixed income, i can no longer afford to stay in the home. my parents helped me purchase another home and it is now in their name and is free and clear. with my parents in their 80's and 90's now, i am concurned as to how i can have the home we purchased put into my name and have it protected with a foreclosure staring me in the face. we are considering a living will but not sure if that will protect the home. my parents did a reverse mortgage on the home they own and that will eventually have to be repaid and if the eventual sale of their home comes up short, i and they do not want to see me face the same thing all over again. so my question is how to best protect this home. thanks
hi milomirabelli,

if there is a reverse mortgage on the property, then you will have to refinance it after the death of your parents and pay off the mortgage in full. if you don't do so, then the lender will foreclose the property in order to recover his dues.

as far as your other property in wa is concerned, if the lender forecloses the property, you'll be liable for paying off the deficient balance in full. if you pay off the deficient balance, then the lender won't come after your other properties.

thanks
Posted on: 03rd Dec, 2010 07:02 pm
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