It's an all-too-familiar scenario: a senior family member passes away, and their surviving spouse -- or heirs -- are surprised to learn that the entirety of the home loan has suddenly come due. Indeed, there is such a thing as a reverse mortgage foreclosure.
This situation can be extremely stressful and confusing for a number of reasons. Often, family members are unaware that a reverse mortgage was ever taken out in the first place. However, even if the family is aware of the reverse mortgage, they are usually shocked to find out that the lender can send over a bill for the remaining loan balance immediately after their loved one's death.
Families sometimes rightfully feel like the lender is adding insult to injury by aggressively threatening to foreclose on what is often a cherished family home so soon after their loved one has died.
Under the rules of a reverse mortgage, family members are left with three options in this scenario:
Unfortunately, lenders often do not spell these options out in a clear and timely manner to the families facing this situation. Additionally, in the case of heirs who have to simultaneously navigate probate while weighing their options, the advantage shifts to the lender who can capitalize on a confusing and stressful situation.
If you are facing this scenario or a similar one, you should consider retaining the legal services of a top real estate litigation firm such as JT Legal Group. The attorneys at JT Legal Group have a wealth of experience in foreclosure defense and probate matters, and can be your advocate against overly aggressive lenders to help keep your family's property.
-- Michael Avanesian, Esq.
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