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Reverse Mortgages Part 2

I’ve spoken about reverse mortgages in the past, but today I want to discuss another issue that has been affecting our clients. In a typical reverse mortgage, one of the requirements on the borrower is that they pay their property taxes. Failure to do so could result in the bank filing a foreclosure action. So what happens when a borrower doesn’t pay their property taxes? How far can a bank stretch the terms of the mortgage to recover more money? At what point does the bank’s greed overstep the law?

We have a client who took out a reverse mortgage, like many Americans, to tap into the equity of her home. This additional money was not used for cars, or jewelry or fancy dinners, but to supplement her life. Medical expenses, the rising cost of living in South Florida, and basic necessities can be expensive for retirees. However, like many others, tough times often require tough choices. For a period of time the property taxes could not be paid, and like clockwork the bank filed a foreclosure action. When the bank advised our client that they are foreclosing, they also told her that this can all be fixed, if she were to simply pay what’s due. The magic number of what’s due (for unpaid property taxes) – over $180,000! I can assure you, the outstanding property taxes on our client’s property are not $180,000. In reality, the unpaid property taxes total closer to $40,000.

Another example of a bank abusing the complexities of a reverse mortgage and hoping no one catches it. Thankfully, we’re working with our client to help repay the correct amount of taxes due and holding the bank to task over the inflated figure. Reverse mortgages can be convoluted legal agreements. Don’t let the banks take advantage of you by trying to fight them on your own. Come speak with the attorney’s at Loan Lawyers, and let us help keep you in your home.