Inevitably, you’ve seen the commercials on TV – an elderly,
approachable spokesperson, often times a celebrity, pitching the merits
of a reverse or senior reverse mortgage. Tap into the equity of your home,
use that money for whatever you need, all with the added benefit of minimal
payments. With retirement funds shrinking, the rising cost of medical
expenses, and unforeseen emergencies, a large amount of money readily
available sounds like a promising offer for many Americans. And while
a reverse mortgage in theory can be a beneficial experience, in reality,
many homeowners are facing foreclosure, oftentimes over a technicality.
Having dealt with plenty of these cases, I’ve noticed a common theme
– the reason for the foreclosure and the underlying documents are
oftentimes on flimsy grounds. Let me give you an example. One of our clients
took out a senior reverse mortgage with his now deceased mother. The mortgage
listed the mother and the client as “mortgagors” and very
clearly stated that the reverse mortgage was being granted to both individuals.
One of the ways a bank can foreclose on a reverse mortgage is when all
mortgagors pass away or no longer reside in the property. Remarkably,
once the client’s mother passed on, the bank sued and tried to foreclose
– despite our client, a surviving mortgagor, still living in the
property! The reason they argue, is because the son, our client, was never
meant to be a mortgagor. This is a ridiculous position for the bank to
take, because the mortgage specifically says our client is a mortgagor.
The terms of the banks own mortgage state that they are prohibited from
foreclosing while our client is still alive and living in the property.
To no one’s surprise, that hasn’t stopped the bank from trying.
Thankfully, we’re helping our client defend his case against the
bank for a wrongful foreclosure action. Unfortunately, elderly Americans
are lured in with the promise of easy, additional money to supplement
their lives, without knowing the dirty little tricks the banks play, all
to increase their bottom line. If you have a reverse mortgage and are
facing a foreclosure action, reach out to Loan Lawyers today, and let
us help you retain your property.