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My mother’s reverse mortgage was assigned/sold to HUD before I even had a chance to notify her mortgage company of her passing… less than 2 weeks after she died. I already have title to the home and would like to sell it and keep the proceeds. HUD’s servicer, Compu-Link is impossible to contact and I’m afraid they will cause delays once the house has an offer and we are ready to sell.

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It would be nice if OP would update us with what they found out.
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Reply to JoAnn29
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You can call the constituent affairs office of your Congressional Representative or one of your Senators for assistance dealing with HUD reverse mortgages.
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Reply to MG8522
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JWild64: FWIW, Compulink is otherwise known as Celink.
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Reply to Llamalover47
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As far as I know, a HUD home goes back to the government program and are re sold to people who registered on their list. Those homes go for far below fair market value.
Since this is a probate issue and a real estate issue, you should seek legal representation in real estate. Few of us caregivers have dealt with HUD programs
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Reply to MACinCT
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Not sure what you mean by "I have title to the home". Real estate is not like a car, boat, RV, etc. in which you have a title in hand (if the item is free of debt). Having a real estate Deed in your hand means nothing - it's what's recorded against the Deed at the courthouse that matters (liens, judgments, etc.). A reverse mortgage is a debt just like any other mortgage loan and payable upon death of the borrower. Also, mortgage loans are assigned all the time and is a normal occurrence. You can't sell her house until her estate is probated; and even then, the reverse mortgage will have to be repaid.
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Reply to LadyDi6653
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igloo572 Apr 20, 2025
”Having deed in your hand means nothing”… sadly this is often true. To me, the OP does not understand how her moms RM loan affects ability to have a valid title. My guess is they DIY’d a Quit Claim Deed with mom as the grantor and OP as the grantee & no $ exchanged with grantee intent to “sell it…. keep the proceeds”.

If so, a QCD - in & of itself - does not mean a valid clear title exists. QCD does not release a mortgage or valid liens, they exist and cloud title. QCD only releases grantors supposed interest. For RMs, if QCD done without pay off, it’s a cloudy at best / or fraudulent Title transfer at worst + triggers due-on-sale clause as Reverse Mortgage are NOT an assumable mortgage. RMs totally excluded from Garn - St Germain Act, which allows for heir or spouse to assume a mortgage (w lender approval) and NOT trigger the “due-on” clause. The OP is in a legal thicket & needs attorney asap.
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JWild, I’d like to add…. please pls go through moms house to find every bit of correspondence from RM lender & HUD from past year or better yet past 2 years. If you were not her POA, contact POA to see if they have any correspondence. All done to try to find out exactly why & when RM lender jettisoned loan to HUD. Will be beyond important.
AND….
If you find correspondence from FHA, that as well. FHA is involved in how RMs are done (FHA gets initial MIP / mortgage insurance premium) for HECM RMs.

Two weeks from day of death is pretty fast for entire case file to move over. My guess is moms RM was already noncompliant red flagged. All sorts of stuff can be noncompliant: taxes unpaid, property insurances unpaid, egregious maintenance issues (new roof needed), any change in ownership (transferring title), owner moved out more than 6 months. RM agreement has info as to compliance.

RM can also go to HUD if it’s become a super crappy property. So $ lent by the RM to the owner is approaching or beyond most optimistic appraisal of the property. RM cuts its losses, gets made whole from HUD and turns crappy house and terms of the RM over to HUD to deal with. Even if the elderly owner still alive & in the home, HUD takes over servicing.

If noncompliance came up for RM lenders radar, they would have sent mom letters AND ALSO they did a noncompliance work up (required by FHA & HUD) to the Feds. Then determination done that because of the type(s) of issues, it’s Federal level of noncompliance best dealt with by HUD. & lend turned over to HUD. There would be letters sent out on all this specifically sent to mom.

If compliance abt ownership / Title transfers, it’s rather serious. Imho you need to ASAP find an attorney. Maybe a Real Estate atty who does litigation or maybe a Criminal defense attorney. Not a regular Criminal Defense guy; it’s more you want a mortgage fraud defense atty. It’s a white shoe law firm specialty practice work as Federal laws involved.

Fwiw RM lenders really don’t want to ever turn a loan over to HUD. They want to hold onto the loan then foreclose quickly after elder dies or goes into a Nursing Home or owner does have $ to pay taxes or a required repair, so owner defaults. RM wants the property and wants to sell it asap. RM companies have a system to do legal foreclosure with house usually sold to an investor. All quickly done.
RM isn’t abt to let family / heirs change Title or set timeframe to clear out house and placed For Sale. My understanding is that it is ONLY if family is able to pay 90-95% of homes appraised value $$$ to pay RM off can family acquire property before or after the owner dies. If mom didn’t settle the lend before signing off to change title, this is going into mortgage fraud territory. It’s serious, ya need an attorney.

Again pls go thru to find correspondence, take all that paperwork you did to change title and find an attorney to evaluate your situation.
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Reply to igloo572
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Reverse mortgages are kinda not intended to be of profitable benefit for the elderly homeowner or their heirs as all the $ paid by the RM to your mom + all interest placed on the RM + whatever fees incurred are all debt with the house placed as securitization. RM are debt owed by the owner of the house, or their Estate if they have died, to the RM lender.

Your mom had a HECM non-recourse type of Reverse Mortgage backed by HUD. What that means is if there are issues, the RM company can jettison the lend and its debt to HUD. So HUD becomes the entity who is owed.

For a RM company to actually turn over their lend to HUD, usually is because it’s very very negative equity situation. Or there is some type of non compliance & legal issues with the property. Or a combo of all this. So if that happens, the RM lender stops its involvement in servicing that RM, turns the RM over to HUD, gets paid by HUD whatever losses it may have incurred for doing this RM. So HUD completely takes over. If, for this situation, elder has died - if I’m not mistaken- HUD starts a foreclosure unless heirs can settle the RM debt owed at 90% - 95% within a pretty narrow time frame. If heirs can’t come up with the cash to pay it off pretty asap, then HUDs foreclosure runs its course.

A couple of ?s for you…… how did you go about having title changed to be in your name? Done by attorney? Witnessed? notarized?
-What type of document did mom do to transfer her home to you? By that I mean, what type of Deed was done?
- When did mom do this…. days / months b4 her death?
-Did she or you file/record this document at county courthouse?
- Did you actually pay your mom $ for her house? If so, how was the $ amount determined that you paid mom? and what is the status on that $ now?
OR
- Did she transfer her home to you without any $ paid?
- Were you her DPOA at the time this was done? If not, who was?
and…
- Was mom on a Medicaid program that paid for her stay in a NH, AL or MC? or paid for her to have InHomeHealthcare? or covered her to be enrolled in a PACE type of day program?

You need a lawyer, but the answers on the above will shed some light as to what kind of issues mom’s transfer of title will pose & what type of legal needed.
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Reply to igloo572
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You may need a lawyer. Reverse Mortgages are tricky. Upon Moms death, that loan was due.
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Reply to JoAnn29
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