Today we see many different (one time) celebrities selling our elderly on the concept of a reverse mortgage. The idea that they can enjoy the equity they built up in their homes with no payments while they live in the house. The trouble is that a mortgage company is a company out to make money as soon as possible. So what happens is the original mortgage company will sell the mortgage to another company and so on. I can’t speak for every company. In the last four years sense my mother signed up for a reverse mortgage she has worked with at least 4 or 5 companies. Each one does the same thing.
1. Call and insist she send her insurance information
2. Send a letter and or call insisting her insurance information was not adequate and if she could not prove insurance than she will be in violation and forfeit the house.
3. After 3 or 4 faxes and calls from her insurance company they drop it or start it all over again insisting they did not receive any info.
4. Then they insist she has not paid the taxes which is a violation of the agreement. She is on a payment plan and is all caught up on the taxes but like with the insurance it takes official papers from the state to prove the taxes are all paid up. One paid the taxes then sent her a bill with a large fee and a threatening letter saying (essentially) pay or forfeit the home.
It seems that this company wants to trick her out of her home and at one point almost did. Has anyone run into this or has it been smooth sailing? Please post your experiences.
There are most definitely scammers out there. While it is reasonable to want to verify insurance, I think the best way is to send it return receipt mail and then ignore whatever else they send except perhaps a phone call to tell them they already have it. Keep a copy of everything. If they sue, file a counterclaim for fraud, harassment or whatever else you can think of - she should be well covered.
I'm sorry for your Mom. I knew this one was rotten right out of the box. They want a reverse mortgage? 30 years with all of the fat up front,just like they got.
Having a lawyer on retainer may help. There are some elder lawyers that can help keep the wolves at bay and keep her stress free.
Sorry she has to deal with this.
Another option is to sell the house?
I would have an easier time convincing her to shave her head than speak to an attorney. And the house was her parent’s home (bought in the 1940’s) where she grew up. There is a saying that once you live in the village (Lakemore) you never really leave. It’s like Mayberry (as long as you over look all the Meth labs and people barricading themselves in their homes. A meth Mayberry.
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