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LegalGems, Attorney
Category: Estate Law
Satisfied Customers: 10224
Experience:  Private Practice; Elder Law Attorney; Estate Planning; Attorney Mentor
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Mama had a reverse mortage on a home and 5 acres of land

Customer Question

Mama had a reverse mortage on a home and 5 acres of land when she died. I live 2 countys away and need a lawyer to handle this. It is in Orange County NC. can you recommend one or gice me the advice I need.
Submitted: 11 months ago.
Category: Estate Law
Expert:  LegalGems replied 11 months ago.

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

Expert:  LegalGems replied 11 months ago.

I am sorry to hear of your mother's passing;

can you please tell me what your exact question is-for example, are you the estate representative and you need information on how to open probate? Or how a heir is to handle a reverse mortgage?

Customer: replied 11 months ago.
I have received a letter from Shapiro and Ingle 10130 Prerimeter Parkway,
suite400, CharIlotte,NC28216 it seems to be about a continunce. court case 16SP68 Our File16-079992 Estate of Hattie J Duncan. what do I do. how to handle a reverse mortgage
Customer: replied 11 months ago.
I am waiting
Expert:  LegalGems replied 11 months ago.

Thank you for your patience; I was unable to access this question as someone else had a lock on it.

A reverse mortage is a no recourse loan, so if the loan amount exceeds the home's value, the lender cannot go after the rest of the estate; their recovery is limited to the home that secured the reverse mortgage.

The estate rep will notify the lender of the death of the owner; the lender then will, within 30 days, send out a federally approved appraiser to determine the fair market value of the house. The lender is entitled to the balance owing, or 95% of the fair market value-whichever is less.

If the heirs do not wish to keep the property, the rep would sign a Deed in Lieu of Foreclosure, essentially giving the property to the lender.

If they do wish to sell it or keep it, the lender must be paid 95% of the appraised value, or the amount of the loan, whichever is less.

The heir is entitled to 2 90 day extensions, so long as they are actively attempting to sell the home.

Further questions? Please post here to continue the chat.

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Expert:  LegalGems replied 10 months ago.

Hello again; just checking in to see how things worked out;
if you have further questions please don't hesitate to reach out to me here on Just Answer.