Losing a loved one is hard
enough, but matters can quickly become much worse when your loved one leaves
you a house with a reverse mortgage.
Although you are not
obligated to repay your loved one's debts in any way, the lending agency that
processed the reverse mortgage is completely within their rights to seize the
property. After all, the agreement for receiving a reverse mortgage is that the
lending agency gets the house when the borrower passes away or is no longer fit
to live in the house.
However, as the borrower's
heir, you do still inherit the house when he/she passes away and you still have
rights to the property. Typically, the lending agency will have the house
appraised at the time of the borrower's death to calculate its market value.
In most cases, however, the
house will be foreclosed on and sold at auction for a fraction of its value. As
the borrower's heir, you have a right to arrange a payment arrangement to repay
the debt before it enters foreclosure. You also have the right to sell the property
and keep any funds that are left over after the debt is settled.
It is vitally important,
however, that you remain in contact with the lending agency throughout this
entire process in order to stay in good, legal standing. If the lending agency
refuses to work with you or to share information with you regarding the loan,
you may need to contact an attorney, such as the Hoffman Law Group FL.
The Hoffman Law Group FL is
aware of your rights as an heir to the property and knows how to establish
documented communications with the lending agency. It is important to contact
The Hoffman Law Group FL as early as possible, so that they can protect you
from the lending agency and demonstrate to the courts that you have done
everything that is required of you.
While both you and the
lending agency have a fair claim to the property in question, the lending
agency may try to intimidate you or give you the run-around in order to run out
the time you have before the property is foreclosed on, which can be as little
as 90 days. If you have tried to contact the lending agency about the property
in question and have not received any assistance, you should call the Hoffman Law Group FL immediately and report your case.
