Recently I have had to sell a few homes that have had reverse mortgages on them. They are great for people who need to make sure they can pay taxes or bills. People on a fixed income can be scared as they get older making ends meet.
One recent scenario I had was when one of my clients was not on the reverse mortgage due to her having bad credit. The bad thing was her husband passed away and there she was living in the house. When someone dies who is on title of the reverse mortgage, there is only a short time that can pass before the reverse mortgage company will foreclose. I recommended to my client that she call an attorney and see if she could petition the courts to have the house put in her name. She took my advice and the judge awarded her the house. The only problem was, she was not on title as far as the lender was concerned, so she had to sell the house. She had to give me the death certificate as well as written authorization to contact the lender on her behalf. We were able to get a payoff demand and I was able to sell her home quickly so she could get equity to be able to purchase another property.
Another client just called me and said her mother had passed away and she has a reverse mortgage with Wells Fargo. Her brother was the first Trustee in charge of handling his mother’s affairs. The only problem is that he does not want to sell the house and could care less if Wells Fargo took the house back. The other 5 siblings do care. I suggested one of the siblings talk with an attorney to try to get the brother removed from his duties if he does not want them. They did speak with an attorney and one of the sisters was awarded handling the trust. Now, we just need to get a copy of the trust, a copy of the court order showing the sister can sign instead of the brother, a copy of the death certificate as well as written authorization that I can talk to the bank on their behalf. I will be listing this property next week. Things can be done, even if there are people that don’t want to cooperate. Where there is a will there is a way.
Reverse Mortgages can be good, but make sure there is a plan if one of the spouses passes away. Or if both pass, make sure someone can handle the duties to make sure things are handled in a fair manner.
Let me know if I can help you sell your home in the Inland Empire.
Joan Patterson, B.A, G.R.I., Realtor, BRE#01431647
Keller Williams Realty