Cannot Afford Home and Have Not Been Able to Sell

[GottaGo]

What is the name of your state (only U.S. law)? NJ

Hello, my mother is a part-time employed widow. She has 3.5 years of work left before she will be eligible to collect her pension, as she works in a school system. She owns a home on which she has a reverse mortgage. This home has been on the market at a very low price for almost a year now, but is in a not-so-great neighborhood with a terrible school system and very high taxes. There are many houses for sale in her town, many of which are for sale for even less than the asking price of my mother's. Someone did make an offer on the house once, but the bank refused it saying it was too low.
As my mother is not in the best health physically or financially she will be moving in with me and my family when we close on our new home.

My concern is that this house is not going to sell and that she is going to be stuck paying these taxes on an unoccupied rapidly deteriorating (well over 100 years old) house. This is difficult for her now and will be even more difficult if and when her income is further limited.

Is there any legal 'out' for her in this situation?

Also - if she gets to a point where she is no longer able to afford the taxes on this home and stops paying would the state then garnish her wages/pension/social security benefits?

Thanks in advance.

 

[TheGeekess]

What is the name of your state (only U.S. law)? NJ

Hello, my mother is a part-time employed widow. She has 3.5 years of work left before she will be eligible to collect her pension, as she works in a school system. She owns a home on which she has a reverse mortgage. This home has been on the market at a very low price for almost a year now, but is in a not-so-great neighborhood with a terrible school system and very high taxes. There are many houses for sale in her town, many of which are for sale for even less than the asking price of my mother's. Someone did make an offer on the house once, but the bank refused it saying it was too low.
As my mother is not in the best health physically or financially she will be moving in with me and my family when we close on our new home.

My concern is that this house is not going to sell and that she is going to be stuck paying these taxes on an unoccupied rapidly deteriorating (well over 100 years old) house. This is difficult for her now and will be even more difficult if and when her income is further limited.

Is there any legal 'out' for her in this situation?

Also - if she gets to a point where she is no longer able to afford the taxes on this home and stops paying would the state then garnish her wages/pension/social security benefits?

Thanks in advance.

If Mom leaves the house for to live elsewhere for length of time (6 months is sticking out in my head), the reverse mortgage becomes due and payable.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten

Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits. You retain the title to your home, and you don’t have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence.

http://www.consumer.ftc.gov/articles/0192-reverse-mortgages

 

[Mass_Shyster]

She should talk to a local attorney.

It may be possible for her to simply walk away from the house and let the bank foreclose. She'll probably ruin her credit, and may be forced into bankruptcy, which is why she should speak to an attorney.

She should also ask the attorney what happens if she stops paying the real estate taxes. The city/town may take the house, but I don't know if they can come after her after that.

If the value of the home is less than the balance on the reverse mortgage, walking away from it may be the best option.

 

[Proserpina]

What is the name of your state (only U.S. law)? NJ

Hello, my mother is a part-time employed widow. She has 3.5 years of work left before she will be eligible to collect her pension, as she works in a school system. She owns a home on which she has a reverse mortgage. This home has been on the market at a very low price for almost a year now, but is in a not-so-great neighborhood with a terrible school system and very high taxes. There are many houses for sale in her town, many of which are for sale for even less than the asking price of my mother's. Someone did make an offer on the house once, but the bank refused it saying it was too low.
As my mother is not in the best health physically or financially she will be moving in with me and my family when we close on our new home.

My concern is that this house is not going to sell and that she is going to be stuck paying these taxes on an unoccupied rapidly deteriorating (well over 100 years old) house. This is difficult for her now and will be even more difficult if and when her income is further limited.

Is there any legal 'out' for her in this situation?

Also - if she gets to a point where she is no longer able to afford the taxes on this home and stops paying would the state then garnish her wages/pension/social security benefits?

Thanks in advance.

Wages: Yes, New Jersey is allowed to garnish your wages for unpaid property taxes

Social security payments, disability benefits, or state-administered benefits: Nope. They can't have those.

Pension: Depends. Generally no though

 

[GottaGo]

Thanks, everyone.