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Kthompson1975 Asked December 2014

Friend is losing his home after HUD got his mother w/dementia (now deceased) to sign a contract on it. Advice?

I need to be pointed in the direction of any agencies that may be able to refer him to a lawyer that will work with him. HUD convinced his mother to sign a contract on their home. When HUD found lead paint in that beautiful older home instead of lead paint removal they demolished the home and built a new one. Her family tried to convince her signing off on this was a bad idea. Shortly afterwards she was diagnosed with Parkinson's/dementia and her health quickly declined. My friend moved back home to care for her and was also her legal beneficiary. She passed a few years ago and now HUD is saying that they are now owed $80,000 that he has to pay or lose the house. He has health issues and very little to his name and is facing homelessness because of a contract that the family believes his mother wouldn't have signed if dementia hadn't been developing. Are there any organizations out there that we can contact for advice or that can refer us to a lawyer that can work around his financial situation?

EXPERT Carol Bradley Bursack, CDSGF Dec 2014
I'd contact the attorney general's office of the pertinent state and ask about pro bono legal help. Explain the issue your friend faces and that he needs help. I hope that this can be ironed out. Please let us know how this turns out.
Carol

pamstegma Dec 2014
Ummmm he probably never told HUD that she died, because a mortgage is due immediately when a borrower dies. If he can't take over the mortgage in his name, he loses the house. If he is refusing to pay the mortgage, he loses the house. I will guess that he simply stopped paying when mom died, out of resentment, thinking the house should be his, and he made no effort to settle mom's estate. That results in foreclosure and eviction after a few years, when the lender realizes the borrower is deceased. Sorry he chose to go that way.

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