Philip J. Cunningham Sr
V.I.P. Realty Corporation
7942 Bustleton Ave
This is a question for a Pa licensed attorney that can look at all the documents and give you very specific and verifiable advice.
Managing the reverse mortgage and purchasing a property from HUD are totally different streams of action. Each one must be dealt with directly and individually.
Please seek legal advice, there are community legal aid offices in Philadelphia, seek one out tomorrow while you still have time.
The Barlow Group at Keller Williams Center City
"Once the mortgage comes due, the borrower or heirs of the estate have an option to refinance the home and keep it.(or buy it outright if you have the cash and don't need a loan)........... sell the home and cash out any remaining equity........... or turn the home over to the lender. "
"Once a reverse mortgage is called due and payable, the borrower (or their heirs) can possibly be granted time extensions by the lender to give them up to one year to make this decision."
Check with the lender as to a possible extension if you are in a position to refinance the loan, if there is enough equity left, so that you can remain in the home.
The good news is - that if the home is worth less than the total loan amount, you, as an heir, and the estate, will not be held responsible for any shortage.
You have the ability to buy the house. If there was a Will and there is equity in the property you can purchase the property for what is owed. Check with the lender what is the payoff balance; then check with a local realtor as to how much house is worth.
Also, check with your local lenders for your State.