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Forums > Homeowner Association > HOA Discussions
Subject: Reverse Mortgage
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Author Messages
MissyS
(Florida)

Posts:67
08/20/2010 8:39 AM  
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:57
08/20/2010 10:06 AM  
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:487
08/20/2010 10:36 AM  
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


Posts:0
08/20/2010 11:11 AM  
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:57
08/20/2010 11:39 AM  
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:1442
08/20/2010 12:09 PM  
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:487
08/20/2010 12:58 PM  
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
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Forums > Homeowner Association > HOA Discussions > Reverse Mortgage


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