Took care of mom for 9 years at her condo with ALZ. She passed (last year) I am still living here but not on the reverse mortgage. I have been told I should not pay HOA fees as I have no ownership at all. I have been paying them thinking it would keep me here longer until I find a rental. But then I am told it does not matter. I do not want hassles and lawyer fees from the condo assoc. There are no assets and I do not want to be responsible of condo lawyer fees even though its not my responsibility. Should I not pay them? Does it matter either way? If I pay will it prolong my stay? It's in foreclosure as it is. Lawyers have said don't pay the HOA fees. But these days its hard to trust lawyers...
- the RM on a property who’s owner is deceased. RMs are pretty proactive in acquiring a property after death. HUD backed RM (HECM) contracts - in my understanding - requires them to allow like 90 days for family to place a written position that they are securing financing to buy the property from the RM at 90% & family has to get this done within that period of time. Otherwise the RM takes over the property. It’s not a foreclosure but cancellation of the RM agreement due to death of owner & pretty straightforward. A RM foreclosure would happen if owner did something to be outside of the contract, like owner did not pay property taxes or owner moved out permanently and into a NH. If foreclosure was happening was the situation and then atop the on-going foreclosure they died so the terms of original RM now get involved.... it’s going to be even messier as foreclosure has to get somehow set aside and then property acquired by original contract terms.
They are very different legal paths, do you know which it is?
What type of communication between you personally & the RM?
Other than the condo with he RM are there any other assets of your mom’s so that there ever would be the need for probate?
- the condo monthly HOA are debts of her estate just as any utility bills, assessments, or any other debts (like credit card) she died owing. The RM - I’d bet - has refused to pay it until they legally acquire property. HOA can’t force them to as RM don’t own it. If this happens, HOA will have to eat the monthly fees till then.... unless they can get someone else to pay it. Which you are doing. I’d be very concerned that HOA is using your living there as a reason to foot-drag working with the RM.
Just what’s this place like? Newer upscale condo in the 500k++ range? If not and it’s kinda lower end & if there are other units currently up for sale or its a building done in the real estate boom years so it’s old, it might be hard to sell. If it’s old & old RM, RM may be negative equity but if it’s HUD backed no worries for lender. For the condo, your paying monthly HOA is $ they need to get as there not a lot of others wanting it. If you stop paying, I’d bet condo will change the door locks without notice. Your toast on getting anything from the unit. If your not buying condo from RM, then as others have said you need to get out eventually. Personally I wouldn’t wait, it’s already been months since her death & RM will have to do an action sooner rather than later. Really really move your things out ASAP & without attracting attention if feasible. Good luck.
The main issue here is the Reverse Mortgage. Since the note payer has passed, then the Reverse Mortgage becomes due and payable. The condo will need to be sold. I am really surprised you have been able to live in the condo for this length of time. Who inherited the condo?
Now, the non-payment of HOA fees will cause a glitch with a sale. As Ahmijoy has mentioned, the Association will place a lien on the condo for non-payment of the HOA fees. That lien would need to be paid before the heirs can go to settlement when there is a buyer.
My son told me just yesterday that, as president of his HOA, he and the board are putting a lien on someone’s house who didn’t pay their HOA. But, he said they can’t really evict the homeowner.
I know dealings with attorneys can be a pain. Unfortunately it’s what you need to do. Bear in mind that if an attorney gets a reputation as a shyster, he gets disbarred. .