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KJL LAW, Arbitrator
Category: Real Estate Law
Satisfied Customers: 1536
Experience:  Attorney at Law Office of KJLLAW
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I recently closed a Reverse Mortgage on my personal residence.

Customer Question

I recently closed a Reverse Mortgage on my personal residence. Subsequently, I received a call from the title insurance company stating that there was an outstanding lien, relating to a loan, that was not addressed in the closing of the reverse mortgage. They evidently negotiated and paid that loan off without any participation on my part. They want me to pay off the loan or set up a payment plan. What is my obligation under these circumstances?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  KJL LAW replied 1 year ago.
Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.
The reverse mortgage is just like any other mortgage with regards ***** ***** title insurance and recording. You bought a lender's policy of title insurance as part of your transaction, and the title policy insures the lender from loss due to the extra lien.
Under the law, unfortunately, you still owe the money. Just any other bill you owed prior to closing, just because they didn’t catch it, doesn’t mean you don't owe the money. Since the lien is yours, legally you're going to have to pay that lien. I assume you purchased a lender's policy of title insurance. If you do, under the terms of the policy and your note, they can pay it off, and as they offered, pay it off and tack it on to your balance, usually boosting your payment in the process.
I hope this helps.
Expert:  KJL LAW replied 1 year ago.
If you have any additional questions please let me know.
Expert:  KJL LAW replied 1 year ago.
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