Quote:
Originally Posted by deeds
home in NJ.....father passed away and had reverse mtge..we lived in home for 20 years with him ..live in home still ....were notified .foreclosure proceedings will start in 30 days.....what should we expect....thanks
|
My condolences on your fathers death.
Your father probably took some cash out and didn't have a payment after his refinance to his passing. If any comforting though, this possibly lead for an easier life in his last years.
The first question you have to ask your self. Do you want to keep or let it go.
The last reverse mortgage I wrote a couple of years ago, the LTV requirement was no greater than 50% for the loan amount. Depending on how long he lived after the refinance, is going to determine the balance.
Point you have the upper hand because the property is now a Bank ROE owned property. Find out what the balance is, comparing to what the value is. It might be advantageous to qualify for a mortgage and buy the property from the bank. You may be able to negotiate a lower price if the value has dropped. Like a short sale - making an offer to buy the property from the bank. The do something like this, you need an attorney to negotiate with the bank. Depending on the circumstances there may be "Arms Length Transaction" rules that may need to be considered.
Don't waste your time trying to look up rules and find information on the internet. You will not find it.
Look for your fathers loan paperwork. Specifically his loan application and loan note when he did his loan.
Due to changes in bank regulations concerning loans, there our only a few outside rules banks have to follow. Like a contract,
the governing rules pretending to the loan are on the loan-note. There will be information telling you what action needs to be taken.
If you are unable to get his paper work, then you are going to need to contact the bank for instructions.
Generally - reverse mortgage note holders allow the family to retain the home for six months to a year after the death of the individual.
If you are looking to let it go - why give the bank information to try to come after you if there's recourse. Unless an executor for your father's estate was identified, or another person was on the title. Banks only act on the information you provide them. If you are not looking to save the home, don't communicate or give any information to the bank.
Good Luck
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
