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I sold my home and the reverse mortgage company RMS took an extra 20 grand. My loan was 45 they took 68grand what do I do they do

by pds9819 from San Diego, California. May 15th 2017 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

You should look at the paperwork you originally signed on the reverse mortgage and read it thoroughly so you fully understand how it works.. Reverse mortgages are negatively amortized loan,, meaning as each month goes on, and you don't make a payment, your "Unpaid" interest charges are added to your outstanding balance.. if you had a RM and didn't have any payments for several years, then that would explain why the loan payoff was $20K higher than you thought.. if it turns out that they unlawfully added $20K to your loan payoff, then you should contact the CFPB.. this is the watch dog agency for the federal government which investigates mortgage and loan fraud. I'm a preferred Lender with California and Arizona and being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

May 16th 2017
Sara Deere (Mortgagequeen2)
#16 ranked lender in Missouri - 594 contributions

Find your most recent statement from RMS which shows your current principal loan balance. Depending on when the loan closes in the month, the payoff amount could be a little higher than the current principal loan balance. Interest and other fees were adding to your loan either on a monthly or yearly basis, depending on the original program when you received the 45K. Seven years ago some lender's were even charging a service fee which is added to the final loan payoff amount.

May 17th 2017
Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

I hope you got to the bottom of what happened. You might have called RMS and explained that you feel they unduly took $20,000 they should not have. If they do not answer to your satisfaction, or if they truly owe you any money and are reimbursing you, then that is good news. I would consider contacting the CFPB ifthere is no solution and you still feel you might be a victim of fraud.

May 17th 2017
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