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A reverse mortgagee has died. The sister is living in the home and is not part of the reverse mortgage. What will the bank do?

by tk8wood618 from Akron, Ohio. Feb 24th 2021 Reply


Reverse lender won't care. They will begin to take back the home for the amount owed. If there was a will have the sister buy out the mortgage in order to keep the equity. Have her do a gift of equity for the purchase

Feb 24th 2021
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,236 contributions

Foreclose. Tell the sister she needs to start work on getting the estate settled and if there is equity in the home, start the refi process if she wants to keep it. If she is old enough, she can get her own Reverse and keep living there. If she does not qualify or if she wants to sell it to keep the equity, list it. If there is no equity, wait until the bank throws her out before moving and they will take the home back. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ www.ApplyYes.com 480-889-9000.

Feb 24th 2021
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,296 contributions

Initially, probably nothing as they generally allow time to run through probate, etc. . But, eventually they will. This means the loan will need to be paid off, or the house sold. I lend in MN WI IA SD ND. Find me at FirstTimeHomeBuyer-MN.com - Cambria Mortgage, NMLS 274132

Mar 4th 2021
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