Posted on: 07th Jan, 2010 03:42 pm
What happens with the reverse mortgage when the owner of the property dies?
You usually have 6 months to settle the estate and pay off the loan, with the potential for one 3 month extension. Your best bet is to begin talking to the mortgage company immediately so they know what's going on and you know what your timeline is.
I had a client who took too long to settle the estate. They decided to buy the property from the estate because they were living in it.
Due to a bunch of various issues, it took too long, the lender actually foreclosed on the property while I was working on the loan. I happened to work for the same lender at the time. The estate lawyer hadn't put a stay on the foreclosure, it was a mess.
We wound up getting the foreclosure rescinded and finishing up the transaction, but it was a ton of work.
Call the lender ASAP.
I had a client who took too long to settle the estate. They decided to buy the property from the estate because they were living in it.
Due to a bunch of various issues, it took too long, the lender actually foreclosed on the property while I was working on the loan. I happened to work for the same lender at the time. The estate lawyer hadn't put a stay on the foreclosure, it was a mess.
We wound up getting the foreclosure rescinded and finishing up the transaction, but it was a ton of work.
Call the lender ASAP.