Foreclosure in 08005>Question Details

dennisplays, Other/Just Looking in Barnegat, NJ

Im in foreclosure due to reverse mortgage, should I keep paying the property taxes?

Asked by dennisplays, Barnegat, NJ Sat Mar 30, 2013

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I am looking for seniors facing forclosure due to your reverse mortgage. A Class action suit against HUD is about to be filed. If you would like to join this law suit contact me, (Teresa) at tfinch4816@aol.com.
0 votes Thank Flag Link Fri May 9, 2014
What foreclosure? Why are you in foreclosure due to the reverse mtg?

Bank should take the property back from you... You can short sale a reverse mtg...

If the lender tells you that they absolutely will not work with you on the value/loan balance for the purpose of selling the property, just as with any other loan, you still have the decision to make as to whether or not you continue to stay in the home and honor the reverse mortgage agreement, or leave the property anyway forcing the lender to foreclose on the home or give them a Deed in Lieu of Foreclosure. A short sale may or may not have negative effects on your credit, but a foreclosure or Deed in Lieu of Foreclosure certainly will. That is a big decision and one only you can make.

The big advantage of the borrower with the reverse mortgage is that while the home may be over-encumbered, the borrowers can live in the home, payment free, for life and when borrowers do pass or are forced to leave the home, the loan is a non-recourse loan so the lender can only look to the property to repay the debt if the borrowers or their heirs do not want to sell the home and repay the debt themselves. The reverse mortgage is intended to be the last loan you ever need. If you make the choice that you just don't want to live there anymore and do not pay the loan back, then you would be in default of the reverse mortgage agreement.

If you stop paying the taxes it will certainly raise the banks hairs to do something constructively and work along with you to short sale or deed in lieu which is how it was intended if it cannot be sold and is underwater...

Nobody will advise you to stop paying taxes or your mortgage unless it is a legal decision made by your attorney. But some things seem to be the obvious.

Search Short Sales and foeclosure Deals at http://www.BuyNjShortSales.com

Larry Sarlo
RE/MAX Preferred
609-868-1171
lsarlo@comcast.net
http://www.larrysarlo.com
0 votes Thank Flag Link Sat Mar 30, 2013
Consider consulting with an attorney who specializes in real estate; most professionals do offer a free consultation; or contact your local Legal Aid Society for a pro bono attorney, free.
0 votes Thank Flag Link Sat Mar 30, 2013
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