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Maverick, Attorney
Category: Legal
Satisfied Customers: 6422
Experience:  20 years experience as a civil trial and appellate lawyer
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Elderly woman with reverse mortgage paid her monthly amount

Customer Question

Elderly woman with reverse mortgage paid her monthly amount steadily for years. Her checks came back to her for past 3 months and loan changed hands. Letter received that her loan was being sent to HUD and she had until April to pay it off or foreclose. Bank agreed for her to reapply for the monthly pmts, but she won't be approved. An extension form option in case she doesn't qualify due to financial hardship most likely won't be approved since she makes $2,000 more per year than poverty level. She was making her monthly pmts on time as per her original agreement, it was only when the terms changed recently that they will require full pmt or house will be foreclosed. She cannot pay off the loan in full. She has been in this house for 40 years.
Submitted: 1 year ago.
Category: Legal
Expert:  Maverick replied 1 year ago.

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1. Can you tell me why they says the terms of the loan changed?

Customer: replied 1 year ago.
I'm not 100% sure. I believe they sold it and the new mortgage lender would not continue the payment plan. She continued to send payments and they returned them. They gave the options I stated. Sad that this was working for her for years and they changed what she originally agreed to.
Customer: replied 1 year ago.
She recently stopped paying on her chargecards as she could not repay them. She started to use her charges to pay for home repairs and taxes. She is a widow bringing in $1,234 per month including SS and pension.
Customer: replied 1 year ago.
Customer: replied 1 year ago.
I am a friend of hers and she asked me to help her with her phone calls. She is very with it and in her late 80's.
Customer: replied 1 year ago.
This is a person who always paid her bills.
Expert:  Maverick replied 1 year ago.

The new mortgage lender would only have the same rights as the original lender; not more or less. This sounds like a scam because if she has held up her end of the bargain, then they cannot legally change the terms of the contract/loan agreement mid-stream without becoming liable for a breach of contract.

The best thing to do here is to consult a local business litigation lawyer and see if you can get a free consult to look over the paperwork. The problem here is that there does not appear to be a way to collect your legal fees against them under PA law. However, a detailed review of the documents you have by a local lawyer may reveal an intent to defraud which may provide a basis for a consumer fraud claim where there might be a provision for attorney's fees or punitive damages or a class action suit.

Try the link above.

Expert:  Maverick replied 1 year ago.

See answer above. Also, if you want to upload any documents for me to review, please go ahead. I would be happy to look at them for you....