Posted on: 03rd Sep, 2009 01:50 pm
My mother took out a reverse mortgage, got $20K lump sump payment to fix up house 5 years ago, however, because of health reasons and age, she has not been able to keep up with maintaining the house, so the house is now falling down around her.. where the bank assessed the house for $111,000.000, which has to be paid back if she sells the home.. Quite frankly, the home is not worth no more than $70K. So for me to sell the home she would never recoup what she owes if she sold.
At this point, I told my mother to walk away from the house and let the bank take it... is this a good idea? Also,
I am her heir, will I have to pay back this loan... I do not believe this home is deeded to me.... Can you give me some suggestions on what to do.
At this point, I told my mother to walk away from the house and let the bank take it... is this a good idea? Also,
I am her heir, will I have to pay back this loan... I do not believe this home is deeded to me.... Can you give me some suggestions on what to do.
I think thats a good idea
You are not responsible to pay back the loan
check this for details
http://www.mortgagefit.com/reverse.html
You are not responsible to pay back the loan
check this for details
http://www.mortgagefit.com/reverse.html
Hi kparker,
Your mother can walk away from the property and let the bank take it, provided she doesn't want to stay there anymore. The reverse mortgage becomes due only when the borrower dies or sells or vacates the property. Once your mother walks away from the property, the loan amount will become due and the lender will take possession of the house. As an heir, you are not responsible to repay the loan. Thus, the lender will not come after you if the house is sold for less than what is owed on it.
Your mother can walk away from the property and let the bank take it, provided she doesn't want to stay there anymore. The reverse mortgage becomes due only when the borrower dies or sells or vacates the property. Once your mother walks away from the property, the loan amount will become due and the lender will take possession of the house. As an heir, you are not responsible to repay the loan. Thus, the lender will not come after you if the house is sold for less than what is owed on it.
kparker ,
I want to ask one question.
presently asset value of propert is 70K. your mother has taken a mortgage of 20K only. it means even after selling it you will get approx 30K.
Why do you want to go away from proerty?
I want to ask one question.
presently asset value of propert is 70K. your mother has taken a mortgage of 20K only. it means even after selling it you will get approx 30K.
Why do you want to go away from proerty?
lovegreg,
well noticed. he should pay back 20K & then he can own the house
well noticed. he should pay back 20K & then he can own the house