Posted on: 05th Nov, 2009 04:50 am
My mother recently passed. She had a reverse mortgage which used up all of the equity in the property. If we (the heirs) allow the property to go into foreclosure will this affect our credit rating?
Thanks,
Gary
Thanks,
Gary
Your name is not on the mortgage so I don't know how that would affect you, unless there are some sort of estate monies the bank could get. Why not try to sell the property, it's FHA insured you won't be on the hook if it sells less than what is owed is my understanding. I suggest you contact the lender to make a more informed decision.
>>If we (the heirs) allow the property to go into foreclosure will this affect our credit rating?
No
No
i agree that you ought to try to work with the lender, sell the home and take whatever profits (if any) there may be. you won't, as noted, be held liable.
