Reverse Mortgage catastrophe! What to do now?

Question

My stepfather got a reverse mortgage 18 months ago and my mother was unable to be put on the loan, because she is only 58 (You must be 62 for an RM). He got the equity in one lump sum $180,000. then left my mother a few months later with the money. My mother just got a letter telling her the house is going to be sold by the mortgage co. because my stepfather has not lived in the home for over 12 months. She either has to pay the full amount back or leave the house she has lived in for years even though her name is on the deed. She is unable to work and cant get another loan to pay the RM.

Is there anything she can do to stop them from taking her house?

Answer 1

Call the mortgage company yourself.  They are usually pretty nice and will talk to you.  Tell them the situation and see if they will set up low payments for your mom temporarily.  In the meantime she needs to get a lawyer to sue her husband. Your mom can probably use your support as well, let her know it will be OK.  It's hard to get things done if you are anxious.  

Answer 2

Call Robert Wagner and tell him what a good deal it is.

She might be able to work out some sort of repayment of the $ 180,000, but if they don't agree she could be out of luck.

She should consult an attorney and see what her legal rights are.  Don't expect someone on Yahoo Answers to know what to do.  It probably varies from state-to-state.

Answer 3

.   The same company that issued the reverse mortgage will give Mom a loan.  It will be at 8.9% interest for 30 years because she is not working. Sounds terrible but she saves the home and she can get a job.  Try it.

Answer 4

The RM was done legally and the requirement is that it is paid back whenever the senior leaves the property.   He has left, now the house is due.

Her name on the deed does not give her the right to simply live there, she has to leave or satisfy the mortgage.    She already stayed a full year longer then the contract allows.

She should be able to get 90k out of him with the divorce, as well as half his social security if she has never worked.

Answer 5

Way too little info.  Do you live in a community property state, common law, were they married, were they divorced, whose home was it to start.  Probably regardless, she needs to get an attorney unless she never had any rights to the hone in the first place.  get her name on the deed if possible.  notify the bank that she wasn't party to the loan and that the stepfather never had ownership of more than half of the residence and they will have to sue the ex for collection.  she may have to sue him too.

Answer 6

Live up to the terms of the agreement. If you make good on it, the lender will not want to foreclose.