Profile picture for bella.summer

When I took reverse mortgage out, I thought I can stay here forever

I took ma reverse mortgage out because money was short.My husband had just died. Even with the mortgage I could not make the extremely high payments. Now I am going thru foreclosure. Meanwhile I received letters from the lender that they had paid the insurance and taxes. I was so ill at that time, that paying bills was the last thing on my mind. Now I have to move. Is there anything I can still do ? My home went on auction and my lender bought it. What's up with that ? To tell you the truth, reverse mortgage is a legal way to scam the elderly
  • July 31 2013 - West Palm Beach
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Answers (4)

Profile picture for user2592162
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  • August 11 2013
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Profile picture for SteadyState
Please remember that a reverse mortgage is a LOAN ON THE EQUITY YOU OWN ON YOUR HOME. You are paying the reverse mortgage company (typically a bank) interest but it is folded into what you receive each month or it accrues and is payable when the home is sold .  Please see the  following articles to understand reverse mortgages.

The pitfalls of  reverse mortgages.

You may want to consult an attorney as the article above  indicates that you must discuss the reverse mortgage with a counselor if you were above 62. Please discuss your situation with individuals who practice elder law. But note that I am not an attorney so this is the opinion of a non-legal professional.
You are in a very difficult situation - please get help.
  • July 31 2013
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A reverse mortgage is a great product, but you have to keep in mind that it doesn't excuse you from your other bills - insurance, taxes, etc.  They can keep you in the house forever, effectively, but if you don't pay your bills it's still going to trigger a foreclosure eventually, unless you catch up.

Generally speaking you want to retain an attorney, talk to the lender, and see what they're willing to do, if anything.  It sounds like everything has already gone through though, so it may be too late, unfortunately.

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This is not legal advice and is not intended to create an attorney-client relationship.  The post is only an opinion.  You should speak to an attorney for further information.  The poster is licensed only in CT & NY.    If this post is useful to you, please remember to upvote it.
  • July 31 2013
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Profile picture for bella.summer
Thank you. Refinance ---with the same lender who carried my reverse mortgage ? 
  • July 31 2013
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