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We are in the process of dealing as heirs to our deceased mother’s home that has a Champion reverse mortgage. We cannot seem to get to the proper channels for any dialogue and there is a sale pending due to a judicial foreclosure.
Allow foreclosure: Heirs are not held responsible for a reverse mortgage loan and can walk away from the property without owing anything. As mentioned earlier, if the home is worth less than the loan amount, that is the lender’s responsibility and why a borrower pays into a federal insurance fund.
A reverse mortgage is different from a traditional mortgage in that it doesn’t require the borrower to make monthly payments to the lender to repay the loan. Instead, loan proceeds are paid out to the borrower according to a plan.
Of course, that wouldn’t make sense with a reverse mortgage that carries no monthly repayment obligation. So, it’s understandable why homeowners, their heirs, and the media are often confused when they see that reverse mortgage foreclosures happen from time to time. WHY WOULD A REVERSE FORECLOSURE OCCUR?
Heirs of the deceased homeowner are expected to notify the reverse-mortgage lender to discuss repayment options. If the reverse mortgage won’t be paid off through a home sale or other option, the.
If, however, you or your heirs are actively working to either refinance your property or sell your property so as to satisfy your reverse mortgage, then foreclosure may be forestalled. The key to a proper and clean end to a loan is to work closely with your Servicer from the time the loan is called due and payable.
Good News for Surviving Heirs: Higher Standards Imposed on Mortgage Lenders On behalf of Futterman, Lanza & Pasculli, LLP posted in Elder Law on Friday, February 17, 2017. New guidelines have been promulgated by the Consumer Financial Protection Bureau ("CFPB") to make it easier to modify or assume an existing mortgage on a decedent’s home.
How To Lower Mortgage Payments Without Refinancing If you have a small-business loan, you might be wondering if you can refinance. without taking on additional debt. Refinancing at a lower interest rate can yield savings in a different way if it.