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Thursday, July 2, 2015

Options To Pay Off A Reverse Mortgage After Parent Dies | Bankrate.com

If the borrower was married, the surviving spouse might be able to remain in the home even if he or she wasn't a co-borrower, according to Sarah Mancini, an attorney at the National Consumer Law Center, a nonprofit advocacy organization in Washington, D.C.
That's important,
Mancini explains, because some borrowers remove a younger spouse from their home's title to secure a larger reverse mortgage, leaving that younger spouse vulnerable to eviction and foreclosure after the older spouse's death.

The rules that affect surviving non-borrower spouses are complicated, and surviving spouses and heirs may need to consult an attorney to interpret their rights and options if the spouse wants to continue occupying the property.

Mancini says,"There are serious legal issues, and possible grounds for a legal challenge if the lender forecloses while there is still a surviving spouse."

Read more: http://www.bankrate.com/finance/mortgages/pay-reverse-mortgage-after-parent-dies.aspx#ixzz3ekV3iYqn

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