Posted on: 10th Jul, 2011 05:38 pm
If I walk away from a reverse mortage with no further cash value and the house is in considerable disrepair, what are my repercussions. Will I be held repsonsible for the house being repaired to a move in condition?
I don't quite get this...with a reverse mortgage, you're receiving payments from the lender, is that not right?
Why walk away (unless it's truly uninhabitable) when you still would be receiving checks?
The disrepair won't come back to haunt you.
Why walk away (unless it's truly uninhabitable) when you still would be receiving checks?
The disrepair won't come back to haunt you.
I am not receving payments, there is no more credit available, the money I did receive is long gone. The house would have to be totally gutted and redone to put it in a sellable condition. Can the company who granted the mortage hold me responsible for the cost of putting the house in sellable condition?
That's not a question that I can answer comfortably, because I don't know the laws of whatever state you live in, nor do I have insight into what machinations that lender might undertake.
However, that being said, I will provide this opinion: I don't think the lender will have any method by which they can hold you accountable for the condition of the property. They'll simply foreclose, take possession, then place the home on the market, seeking the best price they can muster. Anyone purchasing the home would be best served to seek out a rehabilitation loan that would allow for all the renovations and repairs that would need to be done.
Your involvement in the home will end with your residence there - unless your state has a law that provides your lender to seek compensation for any shortfall between sale price and unpaid balance.
It'd be worth your trouble to seek out Legal Aid in your state. I suggest them because you are apparently bereft of funds at this time, and they'd be able to provide you with free legal advice, which would certainly include the precise answers the questions that I've only been able to conjecture about.
I wish you well, and hope that the remaining years treat you a bit more kindly.
However, that being said, I will provide this opinion: I don't think the lender will have any method by which they can hold you accountable for the condition of the property. They'll simply foreclose, take possession, then place the home on the market, seeking the best price they can muster. Anyone purchasing the home would be best served to seek out a rehabilitation loan that would allow for all the renovations and repairs that would need to be done.
Your involvement in the home will end with your residence there - unless your state has a law that provides your lender to seek compensation for any shortfall between sale price and unpaid balance.
It'd be worth your trouble to seek out Legal Aid in your state. I suggest them because you are apparently bereft of funds at this time, and they'd be able to provide you with free legal advice, which would certainly include the precise answers the questions that I've only been able to conjecture about.
I wish you well, and hope that the remaining years treat you a bit more kindly.