When to pay back reverse mortgages

my grandma had a reverse mortage and its almost been a year so the house will foreclose. No one has turned in her will for probate, my name is second on the will if the first cant be the exectur. will anyone be charged for all the stuff in the house? if we do nothing?

Hi Guest,

In case if the heirs do nothing and do not pay off the reverse mortgage dues or refinance it, the lender will foreclose the property to recover his dues. However, the lender will not come after the heirs to recover any deficient amount or any other stuffs.

Thanks

>>will anyone be charged for all the stuff in the house? if we do nothing?

Yes. The Estate will be charged for all the fees associated with the foreclosure.

It only makes sense to let the Lender take the house back via foreclosure if there isn't any equity left in it. With foreclosure, the Lender will sell the house and any remaining money will go to the Estate. There'll be a lot less remaining money if the Lender is forced to foreclose.

If the person who is in charge of things, isn't taking care of things within the timeframe they're suppose to, everybody is going to lose. You should expell that person and take over their position and make things happen properly.

As I understood it, one can not transfer ownership of a property when they have an existing REVERSE mortgage. If one of two parties in the household (both on the deed and reverse mortgage) enters a nursing home, can they then transfer ownership of the home to a son or daughter without first paying off the loan? They want to do this in order to NOT own a home and qualify for government aid (medicaid) (which is fraud any way), and the daughter insists they will lose the home if they go on medicaid to pay the Nursing home. (which is not true, although they might have to sign a bond and mortgage agreement) Thank you for your help.

>>one can not transfer ownership of a property when they have an existing REVERSE mortgage

That's accurate

>>the daughter insists they will lose the home if they go on medicaid to pay the Nursing home

No while they're alive, but the State could use it to pay for care costs after they've passed.

MY MOTHER HAS PASSED AWAY AND HAS A REVERSE MORTGAGE. WE HAVE NOT BEEN ABLE TO SELL HOME. IT WILL HAVE TO GO TO AUCTION. CAN YOU MAKE AN OFFER TO THE REVERSE MORTGAGE COMPANY FOR A LOWER PURCHASE PRICE

>>CAN YOU MAKE AN OFFER TO THE REVERSE MORTGAGE COMPANY FOR A LOWER PURCHASE PRICE

Yes. I used to think "no", but I've heard otherwise since then.

My parents have a reverse mortgage. Mom died in 09/09 and dad died in 06/10. My sister and I are named on the reverse mortgage. We were estranged from my father who had a will made out shortly before he died leaving my brother the executor of the estate. We will probably work things out between the three of us kids, but who has what rights here? Do my sister and I have to sell the house of which the proceeds pay the reverse mortgage and the remainder go to the estate? And then my brother can do what he wants with the difference? If things get dicey with my brother, can my sister and I just walk away and let the lender foreclose?

welcome horseman,

you need to check out whether or not your names are mentioned on the reverse mortgage or on the property deed. if your name is mentioned on the property deed, then you and your sister would be considered as owners of the property. in that case, you can refinance the reverse mortgage into a normal conventional loan, pay off the dues on time and save the property.

if your names are not mentioned on the property deed, then after the probate of the will is complete, your brother can sell off the property and pay off the reverse mortgage dues.

My 85 and 87 year old parents have had a reverse mortgage for about 10 years based upon the worth of about $98,000. They are unable to take care of themselves and want to move into assisted living. If they sell the house they will only get $65-70,000. Do they owe the difference? They have no saved money and would not be able to pay the difference. It says their is a balance of about $34,000, but that is based on the amount the reverse mt. was originally based on.

Your parents will not have to pay off the balance dues resulting from the sale of the property. The reverse mortgage lender will be able to recover only the sale price.

My situation:

My mom and dad got a reverse mortgage on their house a few years ago right before the housing crash. My mom passed away a few years ago and my dad is now in assisted living.

From all I've read on this forum, when my dad dies, the house will go back to the reverse mortgage company with no strings on my behalf (I'm his son).

But since my dad is still alive and will not be coming back to his house, and since I don't plan to buy it (it's upside down right now), can I just call the reverse mortgage company and tell them to take the house?
Since my dad is still living, would he be liable for any costs - and/or would I be responsible for anything? (even though the house isn't listed on their will).
Thanks in advance!!

You can either refinance the reverse mortgage into a conventional loan or you can let the reverse mortgage lender foreclose it and recover his dues. If the property remains in your father's name, then he would be liable for the maintenance and property taxes. I guess your name is not on the property. In that case, you won't be liable for the maintenance and property taxes.

<<If the property remains in your father's name, then he would be liable for the maintenance and property taxes.>>



Does that mean he's liable even AFTER he gives it back to them? Or just liable while he still owns it now?


Thanks for the fast reply!!

Hi,

Once the property is returned to the bank for sale and the property is sold off by the lender to recover the payments, then he won't be able to come after your father for the maintenance of the property as well as the property taxes.