Confusion over a reverse mortgage and beneficiary rights can present much stress after a loved one’s death. One woman is at risk of losing her family home to home foreclosure based on the actions her mother allegedly took in regards to a reverse mortgage and its confusing terms. Florida homeowners who have considered reverse mortgages may want to be clear on the terms to help their beneficiaries avoid home foreclosure or disputes with lenders.
The woman at the center of a recent case making news is trying to keep a home that was appraised at $9,000. However, the woman’s mother took out a reverse mortgage 10 years ago. Debt from that reverse mortgage has amounted to $60,000. The woman says she was unaware of the reverse mortgage that her mother took out on the property.
The lender gave the woman the option to buy the house at a discount believed to be close to the appraisal value. She missed the deadline to do so and has been told to move from the property. She says she was confused by letters from the lender and others. The lender has now offered to sell her the home but only if she leaves while the inspection and reappraisal take place, which is something she does not want to do, as she and neighbors are concerned about vandalism or destruction of the property.
When a homeowner is unaware of how the home foreclosure process works, especially when a reverse mortgage is involved, that homeowner may not make well-informed decisions or be aware of his or her options. Also, when a Florida resident is also unaware of previous decisions by family members, such as reverse mortgages, a beneficiary may not know what to expect. It is best to be aware of terms, deadlines and facts when it comes to home foreclosure in general in order to understand which options are available for a particular situation.
Source: Detroit Free Press, “Time running out for woman to stay in foreclosed home“, Bill Laitner, Sept. 20, 2015