My father just died leaving me in our residence of 8 yr. with a reverse mortgage. I was/am disabled and am 66 and can't afford to pay it off.

You need to talk to the company that holds the reverse mortgage as to their policies. Most of the disability laws have to do with a disabled child when the parent is on Medicaid. I agree with Alva Deer that you need an attorney for this. I would start immediately to makes arrangements for starting over/relocating.

Maltesemom, my heartfelt sympathy to you and your family regarding your Dad's passing.

The Reverse Mortgage was between the bank and your Dad. Once the loan holder passes away, the Reverse Mortgage become due and payable unless a spouse is remaining in the home, then that spouse can live there until they move or pass. The bank will want the reverse mortgage, plus interest, and fees payable within a certain time frame.

I honestly don't think the bank will consider your request as the bank has no contract with you. You probably need to talk with an Attorney or check with Legal Aid who are qualified Attorneys.

One thing to think about will you have the funds to maintain the house once everything is settled? Do you have a large enough income coming in to pay for property taxes, homeowner's insurance, utilities, and any repairs that the house might need such as new plumbing, roof, windows, etc? All these things can be stressors which won't help with your health.

This is a common issue any time an elder has a reverse mortgage on their home.

Under FHA rules the estate has 6 months to pay off reverse mortgage plus fees and interest to get clear title. There is NO legal provision to keep the house free of paying off mortgage available for disabled child. Property taxes will be recalculated without any of the exemptions for aged person after death. Given the facts here? Start looking immediately for a place to live and don’t worry about paying taxes unless you can pay rest. Eviction delays or appeals may not apply as reverse mortgage with dead person trumps renter rights absent an executed lease with proof of tenant relationship. RMs are not designed to help children keep homes without paying off. The rules for removing persons are strict to protect interest of bank. You probably don’t like the freebie advice here either, but you are not going to be able to keep house unless you can refinance in your own name and money which seems unlikely given disability. And other debts have a claim on estate too. Lawyer to look at Will and debts is your best option.

This is one of the negatives of a reverse mortgage. At the time of death, the mortgage is due and payable, or they get the house.

MalteseMom,

1.   You would really need a Florida attorney to address the issue of exceptions for personal hardship, even if your don't want to go that route. 

2.    I'm not clear on the first paragraph of your post.  You're NOT able to pay off the RM, do have resources (inherited or otherwise), as well as funds for taxes?" 

" as I can keep house (large reverse mortgage balance with maybe $60-80K before paying any creditors) maintained and all taxes are paid up (until November, and I can likely get that paid?"

Could you clarify this?    If you were to keep the house, do you have funds for taxes and upkeep?

3.   You could try to contact the RM lender, in writing and sent by cert. mail, citing your situation and asking what relief can be provided?  Generally, I would first ask them what they can or will do, rather than proposing specific scenarios, which could be conceived AFTER you know what their limitations are.)

Let them tell you what's available and what's not, then determine if you can work w/I those parameters to find a solution.

4.    Have you read the RM entirely to see if any options exist, i.e., for disability?   Was your father getting Medicaid?  

5.     Unfortunately, you may have to rethink your position on legal help.  RM lenders can be difficult to deal with, and you need clout, which an attorney could offer.   I understand that your funds don't provide for legal counsel, but there may be possibilities of elder law  or estate planning attorneys having dealt with similar situations and having identified exceptions to RM terms. 

In addition, they would be familiar with FL  case law and precedents.   

6.    You might try contacting AARP to see if there are reps in your area who could help, or at least identify legal resources within AARP.   They're pro-elders, and they may be more up to date on critical issues such as RMs.

7.    You could try getting some general advice through local Seniors Centers which arrange for  attorneys to meet with older residents and offer limited advice. 

8.     You can also research to see if FL has a state agency for seniors and provides limited legal advice.    Michigan used to (and may still) have an Elder Law center for seniors, providing limited free advice for income qualified people.


Another thought based on Becky's comment:   there may be provisions in the ADA (Americans with Disabilities Act) that could pre-empt an RM.   This is where an attorney would have to be involved, to interpret the ADA and any interaction or applicability to an RM.  

Did your father have a will? Are you the executor? Are you the only relative of your father if there is no will?
I hate to say this, because it is money out of your pocket, but you need someone in the know. Others here may know whether you are best to plumb the mind of a realtor or a lawyer as to what can be done.
I "think" and I am last thing from an expert, that it takes a while for these things to get moving, so you may HAVE six months by the time it is ironed out, but move as quickly as you are able.

Is it possible to put the house up for sale - to an investor/ buyer where you can lease back for a for a few years. Make the sale of your home a 1031 exchange option -Have your Realtor find a investor/buyer and draw up a lease agreement before COE (Close of escrow)that buyer will lease back to you for a certain amount of time (1- 2 years) and $$. That gives you time to find a new home.

Buyers of 1031 exchanges cannot reside in said property for at least 2.5 years. Some investors need time anyway to make plans for remodel, or teardown. Sometimes it works as a win win. You may find a buyer without the exercise of a 1031 exchange that wants to make a rental anyway - but make sure the lease deal is done that you can afford and live with before COE.

Of course, as with any RE deal, Title, Liens, etc AND Probate play a role here.

Just a thought to explore.

Florida evictions are very slow to come to a conclusion. Keep the payments up, and, start outlining your new life. Selling it would cause the least anxiety of all the other options, perhaps you can talk to your therapist, maybe that will help you to figure this out.

I am sorry for your loss.

May God grant you grieving mercies and strength during this time. May He make a way for you to have a home and your life. Hugs!

I am very sorry for your loss. I am afraid you are going to need a lawyer to help you with this. They are the soldiers of the law!


Hugs!!