Reverse Mortgage Violations

[ghtix]

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

In a 55+ Community in Florida, an elderly woman (98) took out a reverse mortgage last year – a line of credit for approx. $300,000 (on a house that isn’t even worth $100,000 in last year's or today’s market). The general rules for reverse mortgages are that they are in effect as long as the person lives in the home, and as long as taxes & other expenses are current. The reverse mortgage company is James B. Nutter.

Last summer her niece from Pennsylvania quietly moved her out and put her in an assisted living home in PA. The woman’s house in Florida has been vacant for almost a year (but still furnished) and according to public records the taxes are unpaid. Since she has no close relatives in Florida, it does not appear that she will return.

The neighbors are concerned that the property is deteriorating and it appears that the reverse mortgage company is not aware of the situation. Conclusions have been drawn that the elderly woman (and perhaps her niece) are drawing money on the line of credit to pay for the expenses of assisted living.

Questions: Should the reverse mortgage company be notified? Should concerned neighbors (and other relatives who found out about this) step up and report this? What is the right thing to do?

Thanks for any insight.

 

[justalayman]

the right thing to do is mind your own business. If the home is in disrepair or the yard is an eyesore, contact the proper authorities. Other than that, the business end of their deal is really none of your business.

 

[HUD-1]

The mortgage companies usually do an annual occupancy certification. At that point, the borower will notify the lender if they have permanently moved out. Borrowers can draw the proceeds of the loan down for any purpose they see fit.

 

[ghtix]

The mortgage companies usually do an annual occupancy certification. At that point, the borower will notify the lender if they have permanently moved out. Borrowers can draw the proceeds of the loan down for any purpose they see fit.

What if the borrower misstates (lies about) their situation and says they haven't moved out - when they really have? Is this all done on paper, or is there a more comprehensive investigation?

 

[FarmerJ]

GH you wrote >What if the borrower misstates (lies about) their situation and says they haven't moved out - when they really have? < its still none of your business , if the former owner leaves unpaid HOA bills the HOA surely knows what its options are since it would be spelled out in bylaws, if the property maint stops meeting a city /county code like say for grass height -weed control ,they have full authority to have the work done and attach the cost to the property taxes , If taxes are not paid do not think the reverse mortgage company wont find out, they will ! in the time being the only thing you can do is complain to city about exterior code violations and if your under a HOA attend meetings and insist the board follow bylaws for all members no matter what the problem is whether its unpaid dues or peeling paint on the outside or what ever aspect of the property they actually have a say over.