HELP NEEDED - REVERSE MORTGAGE - EVICTION PROCESS

[Karen Margrave]

I have come across a lady in northern Californna that is 76 years old. In 2008 she and her husband were taking out a reverse mortgage on their house, through Capital Funding from Texas. Apparently there was a telemarketer or ? that called them. There was someone that brought the paperwork to their house for them to sign, and a notary witnessed the signatures. 

The problem. The husband died last month unexpectedly. In looking at the paperwork, when they refinanced she signed paperwork gifting the title over to the husband. She had just had a stroke and had no clue what she was signing. Now, she has been contacted by the bank saying they are going to begin eviction proceedings in 30 days. 

I have no clue if the eviction process is the same or not for a surviving spouse on a reverse mortgage. Apparently FHA has changed the rules to protect surviving spouses so they aren't evicted, etc. Most lenders don't ask one spouse to sign off.

Has anyone dealt with this? She doesn't have money for a lawyer to challenge it, as it would cost more than it's worth. But, she would like some more time to get her affairs in orfader. 

Anyone? (will someone please @mention Bill G (Gulley) for me, I can't @mention people with initials for some reason. Any other lenders, bankers, that understand the process of reverse mortgages? 

[Mary B.]

This is a shameful thing. A relative of mine had a house free and clear, got remarried and died before her husband who wanted to return the house to her grandkids(they were middle aged when they married and both had families from previous marriages) but he must've passed away before updating his will. His son took deed to the house and moved his girlfriend in and he got a reverse mortgage. The son died and the family went through hell to evict the girlfriend. Soon after the bank called the loan and now the house is under pre-foreclosure. The son's daughter hired a lawyer so hopefully things will work out but she has a house of her own with a mortgage and can't afford to repay the loan....

The downside of reverse mortgages is once the mortgagor passes the bank is more than ready to call the loan in full. Its a situation where families can't count on the sale of their grandparents house to pay the bills after they've passed away because of it. Often because the loan amount was in the hundreds of thousands, set to where relatives won't be able to repay so the bank gets the house or just as bad in situation as the OP described. 

Kudos,

Mary