Seeking advise on a reverse mortgage?



My grandmother (sole-deceased on a Reverse Mortgage) signed a TOD (transfer-upon-death) deed over to me before her death. A few days after her death, I recorded it and sent a letter to the lender with a copy of the deed notifying she had died and “I was looking forward to paying off the loan by refinancing the [300k] mortgage” (mortgage of $300k, appraisal should be around $370K). This was sent within 10 days of her death. I am in process of trying to get a loan and if I can’t qualify I would have a realtor-sale as a backup. Incidentally, I had previously (before foreclosure letter) contacted the lender as one source of my financing quest and they told me they are ‘going out of business’ and no refi with them was possible. Yet a week later, my grandmother (addressed to the estate of) gets a letter stating they are going to foreclose. It looks to be computer-gen and didn’t even mention my letter of intention to refinance with the copy of the trust deed.

Two questions:

1) They ordered a drive-by appraisal. Am I allowed by law a copy of it?

2) MOST IMPORTANTLY can the legally foreclose since I contacted them first, openly, transparently, with the intentions of the property and new deed owner (PS: There is no will nor executor as we will do a small estate affidavit as there is no real property on her estate as I am the deed owner and the principal for whom they should recognize to settle real property? And please don’t ask me to seek legal, just give me your best experience answer-I promise to hold you harmless.

(PS: I plan on re-forwarding my letter and asking for extension while I dispose of a home. But can they legally do this if I’m actively keeping them informed and executing? How can I stop the foreclosure if I am ACTIVELY trying to re-fi or sell and have notified them as such? Attorney fees will become cost Prohibited-I NEED YOUR HELP. THANK YOU.

Hi Cody,

I know you do not want me to advise you to seek legal advice, but unfortunately that is all I can do and that is your best course of action. If the cost is a concern, there are many free legal aid programs out there and there may be one in your area that can help you. We are not attorneys and can’t by law give legal advice, and on a practical side I do not know all the foreclosure laws in all 50 states. Because the original loan is in your Grandmother’s name and that is who the foreclosure is against I don’t know what the rules would be with you attempting to stop that foreclosure at this point. You really do need to find someone who can legally advise you on this matter.

Keep in mind that a foreclosure proceeding is not an instantaneous process and an attorney can advise you on how long the process would take. You may have many months before this could be finalized. As far as the Drive-by Appraisal goes, again an attorney in your area would be able to advise you on whether or not you are legally entitled to a copy. I am sorry we cannot be of more assistance, but this a legal matter and our license restricts us from providing legal advice. I think your best bet is to seek out free legal aid.

Some sites you may find helpful:

Look through the Q&A here answered by real experts:

What Heirs Need to Know About Reverse Mortgages by Kiplinger Magazine