Reverse Mortgage is at 107%???

[Ciji McBride]

Hi Everyone, I hope this is in the right thread and not outside the parameters of this forum. I need some advice about my mother's reverse mortgage.

My mother and father secured a reverse mortgage on their home back in 2009 for about 450K. My father has since passed away, and my mother lives in the house.  The RM is now at about $670K. The last time the home was appraised was in 2013 and the appraisal was at around 950K. Houses on her block have been selling for upwards of 1mil. All the property taxes have been paid on time and she always keeps all the insurance current.

A few months ago, my mother got a letter saying her RM was sold to the FHA's company called Novad. Then she started getting calls saying that her RM was "due" and "ballooning" to "over 107%" . Then they offered her a chance to refinance the RM. Because my mom is older, of course these calls alarm her. I've done some digging and I can't find anywhere that states a RM comes due while the holder is alive and living in the property. I've looked at her statements and nowhere does it say anything is "due". Yes, the payment is going up every month (my mother does not get a monthly check from the mortgage, but does not have to pay anything but taxes and insurance). It seems to me that there is enough equity in the home for her to live there for several years with her RM as it is. But I wanted to ask this group of experts to be sure. Is this anything you've ever heard of?

[Wayne Brooks]

Assuming your mother was at least 62 at the time the RM was originated so they didn't play any "take her off title" games, then she needs to do nothing.  Being upside down is common in RM's, and that would be no reason for the loan to become due.