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Reverse Mortgage

Started by MissyS • 16 replies • 2946 views

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MissyS (Florida)
Posts: 73
Posted:
We have an owner who is delinquent in their assessemnts. We just learned they have a reverse mortage. Will this have any effect on collecting the past due fees? In a reverse mortgage does the owner retain ownership of the property?

DonaldN (Connecticut)
Posts: 183
Posted:
it shouldn't - the bank that issued the reverse mortgage owns the home - in return they pay the owner a lump sum or monthly payments or I guess it could be a combination of the two - sounds to me like they're using the money to pay for something other than the assessment.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
yes .. and .. yes

imo: the hoa is 'screw**' when the owner walks away

this is the latest legal but unethical 'loophole'

unpaid assessments must be pursued NOW with no grace period or mercy shown OR ELSE the remaining owners will pay unfairly
MaryA1 (Arizona)
Posts: 7,043
Posted:
Missy,

I believe the original owner continues to own the home but when he/she dies the bank then gets ownership. Past due notices should be sent to the owner. If she says she no longer owns the home demand that she show proof of this.
DonaldN (Connecticut)
Posts: 183
Posted:
haven't looked at the rules in awhile but that sounds right - i.e. owner maintains ownwership until death - if it's not a foreclosure situation then the owner's a deadbeat and I thought the HOA could go after assets - in the foreclosure case you can approach the bank.

we just had a delinquency/foreclosure and the bank forked over past due assessments - we had our lawyer involved though - no reverse mortgage in play however.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Will this have any effect on collecting the past due fees? In a reverse mortgage does the owner retain ownership of the property?


Actually its better for you as an HOA. In a reverse mortgage, the bank wants to preserve the property because they will end up owning it. Send an overdue notice to the owner and duplicates to the bank with a mention of protecting the HOA by means of foreclosure, liens, etc.. The bank may even pay the dues and take it out of the reverse mortgage and they have no choice.

I know someone with a reverse mortgage where the bank required him to replace his roof. It cost $20,000 and they took it out of the balance of the reverse mortgage. He didn't have a choice. It didn't even need a roof, but the bank wanted one.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
SteveM9;

You are assuming the HO has NOT CASHED OUT with the expectation of 'walking away' down the road.

I have thought of 'cashing out' and being in a position to walk, but, i can't bring myself to be such a hair-bag (like too many of my 'Sunday Christian' neighbors).

RUN RUN RUN (when you are able) from your HOA.

CAVEAT EMPTOR
NancyG3 (North Carolina)
Posts: 342
Posted:
Missy - You could research more details from AARP about reverse mortgages. The way it has been explained to me is I own the home and property not the Bank. The deed is still in my name. I have to pay the property taxes, maintain the property and pay for the insurance as there is no escrow account. The only way the Bank knows if I live in the home is every year I receive a letter inquiring if I still live in the home. I can sell the property at anytime. I don't know what happens if a homeowner just walks away from the property. My thought is it would take a long time if the association tries to collect the past dues from the homeowner. I suggest letting your HOA attorney handle. Hope this helps.
TimB4 (Tennessee)
Posts: 21,047
Posted:
2010 thread reactivated.
NancyG3 (North Carolina)
Posts: 342
Posted:
Missy - Yes the owner still owns their home and property. Keep after the owner for the past dues.
NancyG3 (North Carolina)
Posts: 342
Posted:
Thanks TimB - I just noticed the date after I responded. What do we do from here. Nothing?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NancyG3 on 11/18/2014 2:47 AM
Thanks TimB - I just noticed the date after I responded. What do we do from here. Nothing?

I hope not.

Being of an age when I could qualify for a reverse mortgage, I find myself frustrated with every attempt to find out just how they work. Every website that offers information first wants my name, address, and phone number so they can send some yappie out to my home and get me to sign up for something that I do not fully understand.

Nancy, I for one would love to hear what you or anyone else has found out about reverse mortgages. May I suggest that you start a new thread?

BillH10 (Texas)
Posts: 1,217
Posted:
LarryB

I have direct experience with reverse mortgages, relatives now deceased had utilized them as their retirement funds were insufficient. We were involved in closing out the estates, my wife and I learned a great deal.

I recommend you read the Reverse Mortgage article in Wikipedia, ensure you read the first two or three paragraphs then skip to the section pertaining to the United States. The Wiki article has a header indicating there may be some bias in the article, I did not notice it but it may be there.

I found the article to give a good general overview of the subject. And, best of all, no one will call or want to come to the house.

After reading the article, if you still wish to start a Reverse Mortgage topic, I'll be happy to chime in.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Bill H,

Thanks for the advice about Wiki. They have never come up when I have searched for info so I never thought about looking there.
FredS7 (Arizona)
Posts: 927
Posted:
> Being of an age when I could qualify for a reverse mortgage, I find myself frustrated with every attempt to find out just how they work.

You are probably better off frustrated than actually having a reverse mortgage.

I think you will find that reverse mortgages should be considered a very last resort.
NancyG3 (North Carolina)
Posts: 342
Posted:
LarryB13 - Reread what I previously posted. I don't think this forum is the right place to have this thread. My suggestion to you is to check with your bank, this is where I received my info. I also agree a reverse mortgage isn't for everyone, so think it over carefully.

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