Posted on: 15th Feb, 2011 02:48 pm
My father in law died intestate, and my wife and I just recently closed probate and the property is now in our name. After giving us an extension the reverse mortgage company has placed us in the foreclosure department. However, we have been working with a lender to get a new loan to pay off the reverse, the issue is that we are just shy of qualifying for the amount owed on the reverse mortgage!
Is there anyway a reverse mortgage company will do some sort of loan modification, short refi (or whatever the term is) that will allow us to come to them with a check which is slightly below the amount owed?
We want to save our home.
Is there anyway a reverse mortgage company will do some sort of loan modification, short refi (or whatever the term is) that will allow us to come to them with a check which is slightly below the amount owed?
We want to save our home.
hi reihawaii,
the reverse mortgage lender will want you to pay off the mortgage in full. he won't give you the option of loan modification or short refinance. you should either pay off the mortgage in full or face foreclosure on the property. however, the foreclosure won't affect you in any way as the mortgage was in the name of your father. but you'll lose the property.
thanks
the reverse mortgage lender will want you to pay off the mortgage in full. he won't give you the option of loan modification or short refinance. you should either pay off the mortgage in full or face foreclosure on the property. however, the foreclosure won't affect you in any way as the mortgage was in the name of your father. but you'll lose the property.
thanks
The nature of a reverse mortgage is that it is payable upon death of the mortgagor or sale of the home.
As you noted, the lender is willing to work with you immediately following the death of their borrower, but inasmuch as there no longer exists a real borrower, their options to do anything other than request payment are negated.
You can sell, you can attempt to obtain alternate financing, you can allow the foreclosure to take place, you can fight (not too successfully, I fear) the action. Ideally, you can rectify the "just shy" factor and obtain the new loan from the lender you're working with.
As you noted, the lender is willing to work with you immediately following the death of their borrower, but inasmuch as there no longer exists a real borrower, their options to do anything other than request payment are negated.
You can sell, you can attempt to obtain alternate financing, you can allow the foreclosure to take place, you can fight (not too successfully, I fear) the action. Ideally, you can rectify the "just shy" factor and obtain the new loan from the lender you're working with.
