Reverse Mortgage Obligations
Question: Six years ago after my father passed away, my mother got a reverse mortgage on their Goodyear home. This reverse mortgage paid off their existing mortgage on the home. My mother’s understanding from the loan officer was that she would never have to make another mortgage payment during her lifetime. Last week she received by certified mail a notice that her home is scheduled for foreclosure. My mother is terrified that she is going to lose her home to foreclosure after she was told that she would never have to make any mortgage payments. How can that be?
Answer: Although your mother no longer had any obligation to make any mortgage payments on the reverse mortgage, your mother still had other obligations under the reverse mortgage. The obligations generally include keeping the home in good condition, paying the property taxes, and paying the homeowner’s insurance. You should contact an attorney immediately to go over the reverse mortgage documents to determine what obligations your mother had, and how she has apparently failed to fulfill at least one of these obligations.