Dear fellow Seniors: Do you have a Reverse Mortgage?

[Paper Roses]

About 2 weeks before this pandemic hit, I contacted the first of several Real Estate brokers to initiate the sale of my house. I have had this mortgage for 11 years. Initially the plans were to use the $$ very expensive monies drawn to do some updating of my house and sell it.

Well, things did not go as planned. My husband died a few weeks after the contract was signed.
First it was held by Wells Fargo, then to Financial Freedom and about a year ago the mortgage was sold to a company called Celink.

Since the pandemic hit, the value and interest in my home has gone to heck. There is no market here and I understand why. Not just my house but obviously most houses on the market now.

My house is all I have to leave to my 2 kids.
As the contract stands, there is 1 year to sell the house or they (Celink) will take possession.
Do any of you have any idea if there is any change that allows for extension of this timeline? I called them a week ago and all the lines were BZ. I have not called back.

They call themselves a debt collector on their paperwork. Do you know if there are any government mandates that disallow this clause as we face the thought of no buyers?

Perhaps I am jumping the gun here but I wonder if any of you old timers like me are facing this uncertain situation.
I'd like to hear from you before I try and contact them again.
Stay well friends.

Paper Roses

[Bayard]

1. I don't understand

Are you behind on payments, so they are threatening to foreclose? If not, I think I'd sit tight, and wait for a more opportune time to sell.

I personally think reverse mortgages are a scam to suck all the equity out of your house. Although Tom Selleck makes it sound dreamy.

[Paper Roses]

2. Thanks Bayard, this is the situation.

A reverse mortgage does not require monthly payment to them however they deduct a monthly payment from the established equity of your home at the time the mortgage was initiated.

At the time we took this mortgage out, our position was good, we would sell the house, recoup the cost of repair and update from the monies against this mortgage and buy or rent something else that was smaller than what we had. Out kids were long established in their lives and we were in a house too large for our needs.

Life took a different course and I have now had 12 years of this awful situation. I'm in a position now where I really need to sell and find something smaller with some equity left to live on and leave some kind of an estate for my children. My only income is S.S.The situation keeps me awake at night.

I started the "met with a broker" about a month ago. Needless to say, it is now on the back burner. If something happens to me, as it stands now, my heirs must sell the house within 1 year or forfeit the house to the holder of the reverse mortgage.

When we took out this Reverse Mortgage, it seemed like a good idea since we did not have a lot of money to update.

To those of you who might be considering this option, think twice. It is very costly and you never know what will happen if you, one or both die and the market for real estate is dead.

I regret that I have this and am stuck until this pandemic passes. Perhaps then, if I live thru it, I can sell and find somewhere to live. As a Senior with limited options, this Reverse Mortgage is an albatross.

[Bayard]

3. Ohh....

So you already did that.

I'm not a lawyer, but does it say anything in that contract about refinancing with another bank or credit union? I would think then, you could pay those people off, get a much lower rate right now (one good thing), put some cash in your pocket, and hang on to your house till the market improves.

Have you talked to a lawyer?