Generally, no. If the debt was not reaffirmed, then the lender usually can only seek their judgment against the real estate (called an "in rem" judgment) by selling it, but if it does not sell for enough to pay the mortgage, they cannot come after you (with an "in personam" judgment) since the debt was not reaffirmed. However, if you dismantle the house, or trash the house, or something like that, then I would not be so confident there would not potentially be repercussions. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
Just pay off the reverse mortgage just as any other loan. If there is negative equity you can leave the home to the lender who will take the loss. A reverse mortgage is a non recourse loan, meaning the lender does not have personal recourse against the borrowers if there is negative equity in the home.
You have no control over a lender selling your mortgage. However, it is less likely if you do business with a local bank.
A reverse mortgage can be paid off either by selling the home and using sales proceeds, refinancing the home, or doing a streamline reverse mortgage to a new reverse mortgage program. If the homeowner wishes to move, they can sell and use a reverse mortgage to purchase a new home. If the homeowner has passed away, the heirs have 6 months to refinance the home, sell it, or decide to turn over the home to the lender. If there is negative equity in the home the homeowner or the heirs may turn the property over to the lender and walk away without personal recourse. Reverse mortgages are non recourse loans, meaning the only recourse the lender has for collecting lost funds is against the property itself.
no....... the lender can go after you for up till 2 yrs after they sell the property.
I've heard if the 2nd was used to buy the property initially then there is no recourse. If the 2nd is a line of credit taken later after the initial purchase the lender can sue you for the money.
Just pay off the reverse mortgage just as any other loan. If there is negative equity you can leave the home to the lender who will take the loss. A reverse mortgage is a non recourse loan, meaning the lender does not have personal recourse against the borrowers if there is negative equity in the home.
You have no control over a lender selling your mortgage. However, it is less likely if you do business with a local bank.
A reverse mortgage can be paid off either by selling the home and using sales proceeds, refinancing the home, or doing a streamline reverse mortgage to a new reverse mortgage program. If the homeowner wishes to move, they can sell and use a reverse mortgage to purchase a new home. If the homeowner has passed away, the heirs have 6 months to refinance the home, sell it, or decide to turn over the home to the lender. If there is negative equity in the home the homeowner or the heirs may turn the property over to the lender and walk away without personal recourse. Reverse mortgages are non recourse loans, meaning the only recourse the lender has for collecting lost funds is against the property itself.
no....... the lender can go after you for up till 2 yrs after they sell the property.
Yes.
I've heard if the 2nd was used to buy the property initially then there is no recourse. If the 2nd is a line of credit taken later after the initial purchase the lender can sue you for the money.
No, it is still valid
You need to discuss it with your lender. The present mortgage would need to be discharged and the new mortgage executed if the lender agrees.You need to discuss it with your lender. The present mortgage would need to be discharged and the new mortgage executed if the lender agrees.You need to discuss it with your lender. The present mortgage would need to be discharged and the new mortgage executed if the lender agrees.You need to discuss it with your lender. The present mortgage would need to be discharged and the new mortgage executed if the lender agrees.
The lender owns the mortgage and only the lender can modify it. You need to discuss it with the lender.
The primary mortgage lender holds the first mortgage. If his mortgage is not paid, he sells the property. He gets paid. You may have a second mortgage. If the second mortgage lender is not paid, he can sell the property. If he sells the property, the primary mortgage lender gets paid first, then the secondary lender gets paid.
Your name cannot be taken off a mortgage because the mortgage is owned by the lender. You remain responsible for the mortgage until it is paid off or refinanced without you.
If the deficiency is forgiven by the lender, is it still subject to federal and state tax? The mortgage preforeclosure short sale closing date was in 2005.