My mom took out a reversed mortgage unknown to me. I found out a year later. 2015 is when she did it. I live with her and my child who is disabled. I'm on the deed to the house. She is in the hospital and I'm scared. I know if she passes my daughter and I will have to sell my childhood home to pay back the loan. She owes 300k and the house is worth 600k. Has anyone successfully sold a house with a reverse mortgage before they try to foreclose. I know they give you about a year but I'm not sure if I can sell it in the time allotted. I guess I'm just looking for help and an ear for someone to listen.
Please DO take a break before jumping in to deal with the house. The realtor's advice sounds good, and you could make a profit, but remember that this is the first realtor. I'm working with 2, will add another, and then decide who I really want to handle the house sale.
If you do that, you can get good comparisons and match your ideas and intents with someone who's the most compatible and will provide you with the best service. You can also create a checklist of issues, and keep adding as more may likely arise as you get further into the sale issues.
But, first, take at least a week off and do nothing except relax. The last months have been especially traumatic, and you need a break. Speaking from experience, that break will help you approach the next steps with more clarity. And if you feel that decisions are literally closing in on you, you're not alone.
Your poor mom! She went through so much in such a short period of time. I know how it feels to lose a mom that was your best friend. She will be with you in spirit.
Also sorry about the house needing to be sold. Can you just reschedule the realtor for another week or two to let yourself grieve? Please consider that as you need time to take care of yourself, your daughter and your mom’s funeral.
Only draw back is if your Mom never raised the rent nor there is no mentioned of a percentage increase each month [when I had rental properties I never raised the rents as I wanted to keep outstanding tenants].... so the new owner may want to raise the rents once each tenant's lease is up for renewal.
Sorry you will need to sell the house later down the road because of the Reverse Mortgage. Unless you think you can refinance the house to pay back the loan, interest, and fees.
As to the house, we can't offer suggestions unless additional information is provided. Please reread our posts, especially Igloo's and mine, and clarify the title, ownership and RM issues for us.
I'm still not clear how your mother could execute an RM if you're both on the title.
I wasn't aware there were tenants; that could make the house not a residential one, but an income bearing one, and factor into the RM home use issue.
As to the tenants, you might just let them know what the situation is, but indicate that life is too complex right now for you to make any decisions.
If the questions are too much for you right now (and you are in an overwhelmingly complex situation), just say so and we can simplify the questions and issues.
And remember to take some down time for yourself; your life is complicated enough right now.
ETA: CM's makes a good point. I wound NOT contact the RM lender. There's too much going on and we still don't have all the information needed on this issue. DON'T give them a heads-up and give them a chance to accelerate the indebtedness.
Now on to the house. Me and mom had the top floor and the 2nd and basement apartments were all rented out. These tenants gave my mom no problems and I dont know how to go about telling them they have to vacate when my mom passes. They've been here since 1997. I tried clearing out some of my moms things and I broke down. Going to the hospital everyday and coming home to an empty house takes a toll on me mentally and physically. My daughter is nonverbal and autistic, she is 13, still only eats baby food and 2 hours and wears pullups. Everything is happening so fast. Selling the house is one thing but where do me and my daughter go from there. I feel alone because she was my bestfriend. She always calmed me when I worried about my child not being able to communicate with me if someone were hurting or mistreating her. I really dont know what the future has in store for me. My mom was my everything. It seems like everyone who raised me is leaving me. My dad died in 2009, Grandmothers passed within two years of each other. It just feels like everyone is leaving me. Please continue to send encouraging words. I talked to a realtor not disclosing the reversed mortgage and he said he could get probably 700k for it. I dont trust some realtors they make all these promises but who knows.
Personally I think there’s at the edge of predatory lending for many RMs. 300k on a 600k paid off house. Sheesh.
It’s a line of credit RM, isn’t it? That’s what the monthly letters are about. They want mom to drain out the LOC.
Good thoughts to you and your mom.
As far as giving the house up, that’s hard. But realistically the upkeep on a 50 y/o house can be costly, so sometimes giving it up is a blessing in disquise.
I'm wishing the best for her, and peace for you and your daughter. This must be difficult for both of you.
I'm not sure I understand the monthly statements. From what would she be withdrawing? Do you mean the reverse mortgage company is asking if she wants to withdraw more funds, increasing the amount outstanding?
My now 83 year old mother moved in with myself and my husband June 1st of 2017. She had a reverse mortgage on her home in Illinois. I’m her POA, and I had no problem selling her home. I got a realtor and put the house on the market and my attorney handled everything else once we had a buyer. I did have to provide proof of my POA documents. But once I did that I was able to sign for her. The house sold in no time and the check was made out to my mother and given to me. This process was new to me and I too thought that the reverse mortgage company was just going to come in and take the house. But after talking with them on the phone I learned that they would much rather you sell it on your own and give them their money. They ready don’t want to be bothered with the process of taking it over and now having to sell it. I suggest you get a good attorney that can walk you through the process. My attorney made it all go so smoothly. God Bless, I hope everything works out for you.
Does the $300K owed include the reverse mortgage, as amortized to date?
These are the first question to research.
You could only sell it if (a) both of you can execute the sale papers (b) your mother is still mentally qualified to sign, i.e., doesn't have diagnosed dementia (I'm not being cruel, just realistic). There might be Medicaid issues, but I'll leave that to people more qualified.
But first, let's focus on your mother and her hospitalization. What's the cause of it? What are her diagnoses? Has anyone told you that she may be facing end of life issues?