Renting a home with a Reverse Mortgage (2015, foreclosures)

[mom47954]

My husband and I have been renting a home since 2009 that unbeknownst to us at the time that it had a Reverse Mortgage. Our Landlord took the homeowner (sadly she had Alzheimer's ) to live with him.
Well fast forward to 2013, the landlord (homeowners Son) starting hinting to us that the home was in default. We also starting getting foreclosure notices addressed to the homeowner.

When I brought this up to our landlord he said not to worry about. He would talk to the bank and work it out. The reason the loan was in default was that the Bank found out the homeowner was not living in the home as her Principal Residence. Sadly the homeowner passed away in 2014, we just found it was a Reverse Mortgage, the Son never let the Bank know we were renting.

Do we have any rights? Why is the Son still hiding the fact that we are renting the home. The Son came over and told us that we will have to move soon, nothing in writing just verbally told us.
We are so confused about all this. Thanks for any advice.

[OwlKaMyst]

Unfortunately, I think you are stuck in the middle with no ground to stand on.
It is my understanding, and your telling looks like a confirmation, that the owner has to reside in the home for the duration of thier life. That's the premise behind a reverse mortgage. The landlord did not want it known there are renters because of this.
It's possible, if you are in the position to, approach the bank and make an offer to buy the home. Other than that, might want to start looking for another place to live.

[2sleepy]

By law you can stay until the end of your lease, or if it is month-to-month you must be given 90 days notice to move. However is the property is sold the new owner can terminate your lease and give you 90 days notice to move. If the rent is below market the bank can raise it by 10% until you have to move out. In 2011 my son unknowingly rented a house that was in foreclosure, he paid rent to the landlord who did not make payments on the mortgage for nearly a year before he became aware of it. Unfortunately there was no compensation for his deposit or for any of the repairs and improvements he made that the landlord had promised to pay him for.

You can also file in small claims court for damages, i.e. moving costs and extraordinary expenses, or lost deposit suffered due to the foreclosure.

[reenzz]

Originally Posted by 2sleepy

By law you can stay until the end of your lease, or if it is month-to-month you must be given 90 days notice to move. However is the property is sold the new owner can terminate your lease and give you 90 days notice to move. If the rent is below market the bank can raise it by 10% until you have to move out. In 2011 my son unknowingly rented a house that was in foreclosure, he paid rent to the landlord who did not make payments on the mortgage for nearly a year before he became aware of it. Unfortunately there was no compensation for his deposit or for any of the repairs and improvements he made that the landlord had promised to pay him for.

You can also file in small claims court for damages, i.e. moving costs and extraordinary expenses, or lost deposit suffered due to the foreclosure.

The tenant is allowed whatever notice that state law allows. NOT 90 days.

[justinbro2002]

The reverse mortgage lender requires that the owner live in the house living with her son caused the bank to excelerate the loan..foreclosure. But in the reverse mortgage world foreclose is a little different. Usually the owner or heir have 90 to 180 days to sell home or pay back loan.

[2sleepy]

Originally Posted by reenzz

The tenant is allowed whatever notice that state law allows. NOT 90 days.

actually we are both wrong, PTFA gave tenants 90 day notice in foreclosures and trumped state law unless the state gave longer notice, but it expired at the end of 2014
Expiration of PTFA » News » Andrew M. Hull, Attorney at Law

BUT it's a moot issue since California law provides for 90 day notice: http://nhlp.org/node/1341#california

[mom47954]

Thank you for your comments. We have a month to month rental agreement. As of January 2015, the landlord is letting us stay rent free until we can find another home. I know the Bank will be soon take the home back... I believe we have lost our $1,300.00 deposit.

[mom47954]

Correction* As of January 2015 the landlord is letting us stay in the home rent free, to enable us to save money to move.
We are still living in the home. Thank you to all who have commented.

[2sleepy]

Originally Posted by mom47954

Correction* As of January 2015 the landlord is letting us stay in the home rent free, to enable us to save money to move.
We are still living in the home. Thank you to all who have commented.

I'm so glad to hear that, please update us when you move and tell us how things are going