Can someone continue to live in a house that has a reverse mortgage after the legal owner is deceased? 25 Answers as of August 04, 2014

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O'Keefe Legal Services, L.L.C.
O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
In Maryland, likely yes, though the personal representative of the deceased person's estate has the authority to determine whether someone should be in the house, and assuming the loan/mortgage is being [re]paid. One should examine the details and conditions of the reverse mortgage agreement.
Answer Applies to: Maryland
Replied: 8/4/2014
Law Office of William Stoddard | William Stoddard
Was the person there before the person that died? Possibly, but the monthly payment on the reverse mortgage must be kept current.
Answer Applies to: Washington
Replied: 7/28/2014
Law Offices of Frances Headley | Frances Headley
They must pay off the mortgage by refinancing the loan if they wish to retain possession of the property.
Answer Applies to: California
Replied: 7/24/2014
Ronald K. Nims LLC | Ronald K. Nims
Only if you're really friendly with the new owners! After the death of the borrower(s) in a reverse mortgage, the bank gets the house and the bank will sell it to get their money back.
Answer Applies to: Ohio
Replied: 7/24/2014
C Page Hamrick Attorney at Law | C Page Hamrick
IN WEST VIRGINIA ONLY: A reverse mortgage is like any other mortgage, however the "due" date on the loan is usually some number of days after the death of the borrowers. The property is still inherited by the heirs or devisees of the decedent, subject to the mortgage; the new owners can pay the loan off and keep the property if they desire, or sell the property and pay off the mortgage loan with the proceeds.
Answer Applies to: West Virginia
Replied: 7/23/2014
    John Ceci PLLC
    John Ceci PLLC | John Ceci
    Yes but with no ownership rights and (I assume) no valid lease the person is risking eviction. The mortgage has to be paid or it will eventually be foreclosed. It sounds like there is a potential estate to be administered too.
    Answer Applies to: Michigan
    Replied: 7/23/2014
    James T. Weiner & Associates, P.C.
    James T. Weiner & Associates, P.C. | James T. Weiner
    Yes but they have to pay off the mortgage. Any equity goes to the estate of the deceased.
    Answer Applies to: Michigan
    Replied: 7/23/2014
    Kirk, Kirk, Howell, Cutler & Thomas | C. Terrell Thomas Jr.
    I would need more facts to determine if the actual person in question can stay living in the house. But, in general, the decedent's house automatically passes at death to his or her heirs . . . either those named in the decedent's Last Will and Testament or the heirs per North Carolina intestacy law. By operation of law, with very limited exceptions, the decedent's heirs who inherit the house have the right to live in the house even though there is a reverse mortgage. With that being said, the reverse mortgage is still owed and, if not paid off, then the mortgage holder can and will foreclose on the house. But, until the mortgage holder forecloses on the house, the lawful heirs can continue to live there. As an aside, the reason I cannot give you an exact answer is because I do not know who the person is that is living in the house.
    Answer Applies to: North Carolina
    Replied: 7/23/2014
    James Law Group
    James Law Group | Christine James
    Potentially, for a short period of time. The company who did the reverse mortgage will perfect their lien sooner or later however, and that person will be forced to leave.
    Answer Applies to: California
    Replied: 7/23/2014
    Homan Legal
    Homan Legal | Andrew Homan
    Any ownership of property solely in the name of the deceased will be transferred in accordance with the duly probated will or, absent a will, in accordance with intestacy statutes. The home ownership can be transferred but it will be subject to the mortgage.
    Answer Applies to: Indiana
    Replied: 7/23/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    No, the bank owns it unless you buy them out.
    Answer Applies to: California
    Replied: 7/23/2014
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    It will depend upon the terms of the mortgage. Usually the property reverts to the mortgage holder upon the death of the owner. They may be willing to rent the property but it's more likely they will choose to sell it.
    Answer Applies to: Nebraska
    Replied: 7/23/2014
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    Generally no; the reverse mortgage needs to be paid in full by new financing, or the lender can foreclose.
    Answer Applies to: California
    Replied: 7/23/2014
    Law Offices of George H. Shers | George H. Shers
    You have to look at the terms of the loan agreement, but normally when the owner sells the house or dies, the unpaid balance of the loan becomes due. If that balance is paid off, then the home would be free and clear of the mortgage. If the person dies, I would think that the home has to be sold in order to pay off the loan. Obviously, if the home is sold the owner has no right to live there.
    Answer Applies to: California
    Replied: 7/23/2014
    Law Office of Jeffrey T. Reed | Jeffrey T. Reed
    Depends, usually once the borrower dies the loan becomes due and has to be paid off or refinanced.
    Answer Applies to: California
    Replied: 7/23/2014
    Gates' Law, PLLC | Thomas E. Gates
    The owner enter into a contract for a reverse mortgage such at the time of her death the mortgage would be paid back. If the estate has enough liquid assets to pay back the mortgage than the Personal Representative follows the directions the will concerning the house.
    Answer Applies to: Washington
    Replied: 7/23/2014
    Coulter's Law
    Coulter's Law | Coulter K. Richardson
    It all depends on the terms of the reverse mortgage.
    Answer Applies to: New Jersey
    Replied: 7/23/2014
    Law Ofices of Edwin K. Niles | Edwin K. Niles
    We would have to review the mortgage, but generally the balance becomes due upon death. The lender will usually extend for 6 months or more to allow for probate. Tenancy is not directly related to ownership, but as a general rule one could reside in the property until there is a change of ownership. If there is a probate, the executor or administrator would have the final decision during probate. We can't give a better answer without more facts.
    Answer Applies to: California
    Replied: 7/22/2014
    Ashcraft & Ashcraft, Ltd.
    Ashcraft & Ashcraft, Ltd. | Randall C. Romei
    Every reverse mortgage has a provision that the residence that secures the loan must be sold when the borrower no longer resides in the residence. This means that the house must be sold when the borrower dies. Every year the borrower receives an affidavit requiring a sworn response by the borrower that the borrower resides in the property. Failure to respond to the affidavit triggers an investigation and ultimately will result in the forced sale of the home.
    Answer Applies to: Illinois
    Replied: 7/23/2014
    Law Office of Pamela Braynon | Pamela Y. Braynon
    Yes they can. Having a mortgage on a house does not have anything to do with occupancy. The mortgage company is basically interested in getting repaid and not whether the property is occupied or not. If the legal owner was the person that secured the reverse mortgage, that person's estate is now responsible for paying the mortgage off. If not paid then the house will be foreclosed on.
    Answer Applies to: Florida
    Replied: 7/22/2014
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    For a little while. The mortgage company has a right to be paid; there are extensions of time that are available in some cases, but eventually the mortgage company will foreclose. If the house can be sold prior to that happening, you're probably better off.
    Answer Applies to: Oregon
    Replied: 7/22/2014
    Law Offices of Richard M. Levy P.C.
    Law Offices of Richard M. Levy P.C. | Richard M. Levy
    The problem is that unless the mortgage is completely paid off after the death, the deed to the property gets transferred to the bank which becomes the owner of the property.
    Answer Applies to: New York
    Replied: 7/22/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A reverse mortgage is due and payable when the last of the persons who took out the loan are deceased. The loan needs to be paid or refinanced with a traditional loan or the lender can commence foreclosure proceedings.
    Answer Applies to: California
    Replied: 7/22/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Dara Goldsmith
    Probably not. The lender will sell the residence as the loan is due and the manner in which it is paid is from the proceeds of the sale. The decedent no longer has a right to be in the property so neither does the tenant. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
    Answer Applies to: Nevada
    Replied: 7/22/2014
    Frederick & Frederick PLC | James P Frederick
    CAN someone? Yes. Is it likely that the lender will allow them to remain there? No. The lender would need to evict them, if they refuse to leave. In any event, in order to prevent fraud charges, the lender should be notified of the death, as should the insurance company.
    Answer Applies to: Michigan
    Replied: 7/22/2014
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