Help! On disability. In mother's home being foreclosed on, need advice?

[arizonahelp]

Illinois. I am currently residing in my mother's home. I moved here, to Illinois, to help my mother and she is now in assisted living.

The house is being foreclosed on because, due to her dementia, she took out reverse mortgage loans, throwing the money away at casinos - due to her dementia.
Due to the fact that she does not have enough money to cover her assisted living costs, she cannot own more than $2,000.00 worth of assets. Thus the house is being foreclosed on.

Anyway, I am hoping someone can assist me in this process and what, if any, rights I have. I would like to see if I can get help purchasing the house.

Metlife is the one that handled the mortgage and sends monthly statements and I think the house is in HUD's name??? The court date to appear is this Thursday, June 21st. Should I call Metlife and offer to buy the home???


Thank you for any help.

 

[nextwife]

Illinois. I am currently residing in my mother's home. I moved here, to Illinois, to help my mother and she is now in assisted living.

The house is being foreclosed on because, due to her dementia, she took out reverse mortgage loans, throwing the money away at casinos - due to her dementia.
Due to the fact that she does not have enough money to cover her assisted living costs, she cannot own more than $2,000.00 worth of assets. Thus the house is being foreclosed on.

Anyway, I am hoping someone can assist me in this process and what, if any, rights I have. I would like to see if I can get help purchasing the house.

Metlife is the one that handled the mortgage and sends monthly statements and I think the house is in HUD's name??? The court date to appear is this Thursday, June 21st. Should I call Metlife and offer to buy the home???


Thank you for any help.

Do you have assets or income with which you can purchase the home? Why have you waited so long to act?

You are not the borrower (or the owner?) and other than trying to buy it, you have no "rights" to the house. You also have no protections, as the child of the borrower, under the Tenant Protection Act.

 

[arizonahelp]

"Do you have assets or income with which you can purchase the home? Why have you waited so long to act?"

I do have savings, yes. I do not handle stress well and really do not know what the next step is.

 

[arizonahelp]

When the appraiser was here a few months ago he said that the bank likes to sell to the children, to avoid foreclosure. Are you aware of this? It does make sense.

 

[nextwife]

When the appraiser was here a few months ago he said that the bank likes to sell to the children, to avoid foreclosure. Are you aware of this? It does make sense.

If they can avoid eviction costs and legal costs, there is some savings there. Where in the process are they? Can you pay them what is owed/advanced? Contact the foreclosure attorneys and ask to relay your offer.


Who is actually in title?

 

[arizonahelp]

"If they can avoid eviction costs and legal costs, there is some savings there. Where in the process are they? Can you pay them what is owed/advanced? Contact the foreclosure attorneys and ask to relay your offer. Who is actually in title?"

A few days ago, in the mail, I received from the county court, plaintiff, Metlife Home Loans. Notice of Motion for June 21st for the entry of an Order of Summary Judgment, Default, Judgment of Foreclosure and Sale, and Appointment of Sheriff or Foreclosure Sale Officer.

Not exactly sure whose name now. Either HUD or mother's, possibly mortgage co. I think the appraisal is $13k (small town). I was thinking of offering $8k cash, which is about my comfort level. Since I lost my job and on disability my credit score I am sure is scary.

Are you aware of any agencies that would assist someone who is on SSI Disability, navigate this process??? Does HUD have any programs for such?

Thank you

 

[HUD-1]

As an heir, you could buy the home for 95% of appraised value. You would have to draft a contract and get approval from the servicer. You also need to act fairly quickly. Are you sure about the $13,000 value? Given that closing costs for the HUD HECM are high, I have never heard of a reverse mortgage on a property valued so low.

 

[nextwife]

I wonder what "appraisal" is being referred to? Is that low value due to any recent "waste" to the property? Even IF the "appraisaL" (not assessment) were 13k, 8k is only about 61% of that. A foreclosure costs at least $3500 or more.

How long has your housing been in this property? Have you been saving any of what you would have otherwise needed for housing to put toward the purchase, over and above your purchase savings?

Talk to a lender for a preapproval. If your income is severly limited, how will you address taxes, insurance, utilities and maintenance?

 

[arizonahelp]

"As an heir, you could buy the home for 95% of appraised value. You would have to draft a contract and get approval from the servicer. You also need to act fairly quickly. Are you sure about the $13,000 value? Given that closing costs for the HUD HECM are high, I have never heard of a reverse mortgage on a property valued so low."

I am fairly confident of the value, but not sure. The value has decreased since she purchased it.

 

[arizonahelp]

"I wonder what "appraisal" is being referred to? Is that low value due to any recent "waste" to the property? Even IF the "appraisaL" (not assessment) were 13k, 8k is only about 61% of that. A foreclosure costs at least $3500 or more.

How long has your housing been in this property? Have you been saving any of what you would have otherwise needed for housing to put toward the purchase, over and above your purchase savings?

Talk to a lender for a preapproval. If your income is severly limited, how will you address taxes, insurance, utilities and maintenance?"

The appraiser said the house would be appraised around $10 k. You speak of $3500 foreclosure costs. This may be why I see $13k online.

I have resided here for almost 3 years, and yes, I have saved money. I hope to put some money down and have savings as well, to cover things like taxes and such.