Posted on: 08th Oct, 2010 05:16 am
I have a 8 year old reverse mortgage. At the most I can sell my garden home for $80,000. I owe the reverse mortgage company $160,000. I need to be with my daughter full time, she's 1000 miles away. Is there any way to resolve my dilema or someone who understands what I am talking about.
Jeri Atkin
Jeri Atkin
Welcome jeriA,
If you stay in the property, you'll not be liable for paying back the reverse mortgage to the lender. If you leave the property, the lender will foreclose it and you'll be liable for paying the balance amount to the lender. You can contact your lender and check out if he can forgive the dues considering your case.
If you stay in the property, you'll not be liable for paying back the reverse mortgage to the lender. If you leave the property, the lender will foreclose it and you'll be liable for paying the balance amount to the lender. You can contact your lender and check out if he can forgive the dues considering your case.
You've just encountered one of the nice features about HUD's FHA-insured Reverse Mortgage program. The insurance premiums you've been paying protect you and the Lender if the loan goes negative. The loan becomes due and payable when the home is no longer the homeowners primary property. So when you move away from it, it'll no longer be your primary residence, and the loan will be due. However, neither you nor your heirs are responsible for the negative amount. Your Lender will file a claim against the insurance to collect the difference. Call the toll free number that's located on the monthly statement you receive from your Lender, and let them know you need to move, but can not sell the house because you owe much more then the house is worth. Offer them the deed in lieu of foreclsoure, to reduce their foreclosure costs, and go from there.
