Would having a possible credit card judgment pending affect her chances of getting the reverse mortgage? 11 Answers as of February 07, 2014

My mother is thinking of getting a reverse mortgage. I am not on the deed to house.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Pamela Braynon | Pamela Y. Braynon
Its not supposed to, however, the company giving the mortgage may want some details on it.
Answer Applies to: Florida
Replied: 2/7/2014
Law Office Of Victor Waid
Law Office Of Victor Waid | Victor Waid
You need to talk to a lender agent who specializes in reverse mortgages to answer your question as to whether an outstanding judgment will affect her loan application.
Answer Applies to: California
Replied: 2/4/2014
Law Ofices of Edwin K. Niles | Edwin K. Niles
Reverse mortgage are generally a bad idea. Make sure she knows what she is doing. Yes, debt would have an effect.
Answer Applies to: California
Replied: 2/4/2014
Ashcraft & Ashcraft, Ltd.
Ashcraft & Ashcraft, Ltd. | Randall C. Romei
The credit worthiness of the applicant will always affect loan qualification. This does not mean the loan cannot be obtained. It may be that the lender will want funds withdrawn under the reverse mortgage to pay off the credit card judgment.
Answer Applies to: Illinois
Replied: 2/4/2014
Patrick W. Currin, Attorney at Law | Patrick Currin
If the judgment has been reduced to an Abstract, it would then be a lien on the house and the debt would have to be paid out of the reverse mortgage proceeds.
Answer Applies to: California
Replied: 2/4/2014
    Peters Law, PLLC
    Peters Law, PLLC | Mark T. Peters, Sr.
    Sure, it could affect it. She needs to talk with the reverse mortgage people.
    Answer Applies to: Idaho
    Replied: 2/4/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I would suspect that your mother will be asked to pay off the credit card judgment as part of the conditions for the reverse mortgage. She should speak with an attorney.
    Answer Applies to: Michigan
    Replied: 2/4/2014
    Frederick & Frederick PLC | James P Frederick
    Yes, it would almost certainly have an impact. Your mother really should see an estate planning attorney to determine how best to proceed.
    Answer Applies to: Michigan
    Replied: 2/4/2014
    The Law Office of David L. Leon
    The Law Office of David L. Leon | David L. Leon
    In theory, it shouldn't, as judgment liens typically don't attach to homestead property. In practice, title companies are reluctant to issue title insurance (required for a reverse) if there are judgments. You might consider trying to settle the judgment lien prior to applying for the reverse.
    Answer Applies to: Texas
    Replied: 2/4/2014
    James Law Group
    James Law Group | Christine James
    I don't know.
    Answer Applies to: California
    Replied: 2/6/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    It would likely make it impossible as the judgment lien would be a superior lien to the reverse mortgage and they would not allow that. It would have to be paid, if it doesn't cause the lender to deny the loan outright.
    Answer Applies to: California
    Replied: 2/4/2014
Click to View More Answers: