Part of the reverse mortgage agreement was to keep the property in good condition but it's not in good shape. What should I do?

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Mom had a reverse mortgage done several years ago. After my father passed away I found out there wasnt any money left. Part of the reverse mortgage agreement was to keep the property in good condition. Its not in good shape. The reverse mortgage is in my mom's name not mine. She is now in a nursing home. I have no way of fixing up the house. I'm on a fixed income. I also dont want the house. What should I do?

Answers 1 to 10 of 11
1Cascade1, there are all types of provisions in Reverse Mortgages (as in any contract). Read through the entire agreement and discover all of the provisions. Since the document is not in your name, it doesn't appear to give you any responsibility. Nor does it appear that you will gain any assets on this property. Good luck.
Top Answer
You let them foreclose OR you put the property on the market. If she refuses to put the property on the market, the lender will foreclose shortly.
Cascade, who is your Mom's financial Power of Attorney? Have the POA contact the Reverse Mortgage lender, explain that the owner [Mom] is now in a nursing home and it doesn't look like she will be coming back to the house.... ask if the POA can sell the house on the open market at appraised value?

Hopefully the house will sell at a good price to cover the cost of the Reverse Mortgage, as that has to be repaid, along with the interest, and fees.

If the mortgage company is ok with the house being sold, the POA could sell the house "as is", I would highly recommend getting a licensed Appraiser to give the POA a market value. It would be great to get out from under that house, as one would need to pay for real estate taxes, utilities, and yard maintenance.

Let us know what you find out.
1Cascade, please make sure that any items that your mother might still have in the house are removed before you make the call. If foreclosure process begins, you would not want to be locked out before you can get items that you might want. If the house is sitting empty, your mother's insurance policy may need to be modified or it won't cover a vacant property.
Hi yes I am her POA. Thank you about modifying the insurance policy. When her stroke first happened I managed to get many items out. I wanted to make the reverse mortgage call be the last call. She is set to go on Medicaid so she will be unable to pay her home owners insurance.
1cascade1, if your Mom is going on Medicaid, please note that any equity left over, after paying off the Reverse Mortgage, will need to be used as "self pay" at the nursing home until the money is gone.
As far as the reverse mortgage goes there isnt any money left. Stupid question what does self pay mean?
1Cascade1, self pay means that if your mother has any money coming from the sale of house after reverse mortgage is satisfied, that money will have to be used to pay on her nursing home bill until it's all gone. Sometimes family sells a house that was an exempt asset when a person goes on Medicaid, and it's an unpleasant surprise that the money could disqualify the patient from Medicaid until it's spent down or that family cannot use the money from sale for anything other than the benefit of elder within Medicaid rules (limits on funeral policies, etc).
FF & GSA, personally I think for 1Casade's situation, her getting any appraisal done or trying to get an $$$ vacant dwelling policy in place on her moms house or paying taxes (usually due end of January) or other house expenses is a waste of time, energy & limited wallet. Spending a penny on a house with RM that will have no $ left when it sells has no benefit to her or her mom. It's a harsh reality.

1casade - before you contact the RM morgage holder, I'd suggest you find all the RM paperwork and carefully read. Then go and rent a post box like at a UPS or other mailing service store that become moms address for everything like RM, medicaid and any other accounts. There's going to be more things cropping up. I'd suggest instead of a phone call that you as dpoa send a 1 page certified letter to mortgage co that mom has moved to a NH, family has no interest in property and defaulting on contract with that new postal address on the letter. Keep the letter format on your computer as you are likely to have to do similar letters, again sent certified mail to other creditors who come after mom. Having a new address helps keep you organized and from any of this comingling with your financials.
Good luck.
I spoke with the reverse mortgage and I have to send a letter of intent in deed of lieu. They mentioned that I have to get everything out of the house. Unfortunately I am unable to do that and I'm going to have to foreclose. House is in rough shape and I am on a fixed income to get a cleaning crew or rent a dumpster.

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