Can my mom just walk away from her reverse mortgage where she lives or will they come after her to sell it?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can my mom just walk away from her reverse mortgage where she lives or will they come after her to sell it?

She is 81 years old and in failing health; she can’t live in her home alone anymore. She is moving out of the state to my home where I will take care of her. She has an HECM reverse mortgage and if sold would have to pay back around $120,000. I understand if she were to sell it for less, the remaining balance that she would owe is taken care of because of HUD insurance I believe. But the home is very unclean, and to sell it would require money being put into it, and she couldn’t do that, or even be healthy enough to take on that challenge of trying to sell it. What can she do?

Asked on May 14, 2012 under Real Estate Law, Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The first thing in order to answer your question would be for you to carefully read the loan documentation and the mortgage/trust deed secured by your mother's property under the reverse mortgage in that its terms and conditions control in the absence of conflicting state and federal law.

In most circumstances, if your mother walks away from the reverse mortgage on her home, there will be no personal recourse as to her. Before she walks away from the home, I suggest that you consult with a real estate attorney in that the balance owed on the reverse mortgage is not typically due and payable until the owner of the property passes.

Possibly the home can be rented out when she is not living in it to generate some income for her care while she is living with you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption