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Foreclosure of home with Reverse Mortgage - elderly owner with cancer. Anything to stop or delay?
Some elderly friends of ours (nearing 80), have a home with a reverse mortgage that is scheduled to be foreclosed upon in about 3 weeks. They are on social security and one spouse developed cancer which devastated their retirement accounts and wiped out their life savings. She was recently put on Hospice care and the cancer has migrated into her heart. Est. 6 months or less to live. Husband is a veteran with advanced diabetes.
They got behind on bills and it is our understanding that the lender paid their taxes for two cycles to keep the town from initiating a tax foreclosure. The loan is upside down -- no way for the lender to recoup the principal. The non-payment of taxes is the triggering event for the foreclosure. Property is in NH.
The question: is there anything that can be done to delay the foreclosure so that they can stay in the house for the limited time she has left? They have only SS income and medicare. Cancer treatments, ambulances, hospitalization, etc that was not covered took everything they had.
Applying for a workout such as a loan modification may buy them some time. Getting involved in their lawsuit may also work. Filing bankruptcy will also buy time. Lastly - even if the foreclosure happens, the lender would still have to evict which would also take time, and again they could get involved in their eviction case.
(That's how it works here in CT anyway - you can easily drag out a foreclosure for months or years if need be)
I am sorry they are having to deal with this at such a difficult time.
I'm a bit concerned about the money they would spend on attorneys for filing bankruptcy when they have nothing left. Preserving funds seems prudent and not spent on frivolous endeavors at this point.
Since the property is underwater the lender will likely take it back at auction if not an investor will purchase it. The bank and the investor would prefer to do a cash for keys arrangement with no damage to the property. I personally think this is the best hope, without spending more money they don't have, for gaining time in the house. Trying to get the lender or an investor to rent it back until she passes away or she moves to a hospice home.
Is there a family member that can intervene with NationStar and see if they will agree to a deed-in-lieu of foreclosure after she passes?
Thanks for the replies. Was on the phone with the state banking commission about this today and there may be some limited stop-gap tactics to try -- but knowing their financial situation and health -- it's a tough circumstance all around. They have one family member who lives 1,200 miles away that didn't learn about the situation until late last week. Exploring options. Tks.
update: foreclosure auction suspended 48 hours before scheduled time by lender pending filing an at-risk extension with HUD. don't have all the details but some state agency & political involvement helped forestall the process. a little breathing room - for now...
wife passed away. waiting to see what mortgage company does now heading into fall/winter.
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