I was contacted by the heir to care take and oversee construction on a house that had a reverse mortgage. I pay no rent-was told I would be paid for materials and labor from sale of house. I found out house is upsidedown. Got a notice of intent to foreclose. I have done enough work and laid out $ to fairly justify my living here for another 3 months. How long can I hold out?
You still can bring suit for the work you performed. It is just that your lien is worthless. You cannot continue to live in the house unlawfully until you have earned out the amount you are owed. They can evict you if you do not vacate.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
The heir owes you money. The house can be sold and I question that it is upside down because most reverse mortgages are set up at 40-60% of value at the time the loan closes. Without numbers, and values, I would say proceed with off set by rent. It will be 6 months prior to Bank or Trustee Sale, you have a defense to eviction and 6 months may be a better deal.....