The family house has been on the market for approx 9 months (since my mom passed). There are no buyers coming even close to the amount that they owe the bank on the reverse mortgage. The reverse mort co. will begin foreclosure in 4 months at which time I have to relocate. Are there any options for the heirs to the estate in this situation besides coming up with the money for the loan? Does HUD offer any resolutions? Are there any govt programs to help the caregiver who has lived in the house caring for their parent for the past 5 years? I am quite desperate and due to the caregiving I am attempting to find work. I have no savings set aside.
Elder Law Attorney
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 for educational purposes and no attorney-client relationship is formed by providing an answer to a question.
Employment / Labor Attorney
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 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.
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