Legal Will and Reverse Mortgage Question

[legalhelp]

My grandparents just inherited their neighbors estate. The previous owner had a reverse mortgage on the property of $404,000. The house was just recently sold for $385,000. The lawyer has stating the that difference remaining will be taken directly from the bank account of the deceased lady who had passed away before releasing the remaining amount in the account to my grandparents.

My question is, is this normal? They have talked to their accountant who says that they cannot legal take the difference from her bank account.

Any advice is appreciated.

[leonard]

First of all, they need to get a copy of the mortgage and read it, and they have to speak to someone at the mortgage company. Some mortgage companies require the mortgagor to take out insurance that will pay out the mortgage on death as part of qualifying, some don't.

They really can't do anything without this information, which they likely cannot get anywhere other than the mortgage company.

[Reverse Mortgage]

Since reverse mortgages are Government insured and government sponsored, much of the conditions imposed on traditional mortgages do not apply to them. In fact, they are tax-free funds for as long as you live in the home.
One of the most frequent questions that we receive when assisting with Reverse Mortgages is,

[Callista Gail]

Professionals in the reverse mortgage industry (including brokers, loan officers, and lead providers) frequently toss questions around relating the revere mortgage industry in a broad sense. Is the boom here to stay? Is continued growth in the reverse mortgage industry sustainable? How many more brokers and agents can come into the market and without diluting the opportunity?

All of these questions are important many of us who work in and around the HECM reverse mortgage products and services. It is important to consider the long-term prospect of this market.