Deceased parent's house will be facing foreclosure due to reverse mortgage.

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1. Licensed in MA

   

   E. Golden

   Needham Elder Law Attorney

   Contributor Level 17

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   Answered August 31, 2012 16:32. I know how upsetting this must be to you -- you spent so much time and energy caring for your parents only to be faced with foreclosure.
   
   The good news is that the reverse mortgage lender can foreclose only up to the amount that was actually borrowed. The bad news is that you have to come up with the money to pay off the debt if you want to stay there. The lender has a right under the federal laws for reverse mortgages to foreclose, and in the end, your being a dedicated caregiver won't prevent them from moving forward.
   
   You may want to contact MassHousing -- they have a number of foreclosure prevention and loan programs for low- and moderate-income borrowers, and can tell you what you might qualify for given your employment situation. https://www.masshousing.com/portal/server.pt?

   E. Alexandra "Sasha" Golden is a Massachusetts lawyer. All answers are based on Massachusetts law. All answers are... moreE. Alexandra "Sasha" Golden is a Massachusetts lawyer. All answers are based on Massachusetts law. All answers are for educational purposes and no attorney-client relationship is formed by providing an answer to a question. less

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   Erik Hammarlund

   Vineyard Haven Employment / Labor Attorney

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   Answered September 01, 2012 14:11. You can try to look for a program, but if the house is upside down then it is unlikely.
   
   That said: most (if not all) banks would rather receive a short sale than handle a foreclosure. You may be able to sell the house for less than the mortgage debt.

   Do you want accurate, personalized, legal advice that you can rely on? You will have to hire an attorney, not ask... moreDo you want accurate, personalized, legal advice that you can rely on? You will have to hire an attorney, not ask on Avvo. I am not your attorney and am not creating an attorney-client relationship by this post. I am therefore giving only general advice. This advice may not apply to you or your situation; may not take account of all possibilities, and may not match the advice I would give to a client. DO NOT rely on this advice or any other advice on Avvo to make your legal decisions. If you want an answer to a legal question you should retain an attorney who is licensed in your state. less

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3. Licensed in MA

   

   Herbert WeinbergPro

   North Andover Bankruptcy Attorney

   Contributor Level 12

   

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   Answered September 02, 2012 19:35. As already discussed, short sale or just dragging out the foreclosure may buy you a year, give and take. WIth a few ifs, bankruptcy may be an option, They are if the property is a multi unit and if the property can be administered and put in the name of a single individual, then bankruptcy may save the house. The key is that bankruptcy allows you to write down the mortgage to the value of the house and pay it off in five years in a Chapter 13 Proceeding and longer in a Chapter 11 proceeding. Given the drop of values in Revere, this may be realistic. While this is unusual and may be challenged as good faith, given the hardship to you, I think there is some liklihood that the creditor and the court may be look at your situation favorably
   
   Good luck.

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