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My mother is on the mortgage but not on the note for her home. This is a foreclosure. But my mother has a reverse mortgage t...

My mother is on the mortgage but not on the note for her home. This is a foreclosure. But my mother has a reverse mortgage t...

Q: Can you get a reverse mortgage if your house is in foreclosure?

Generally, you cannot obtain a reverse mortgage if your house is already in foreclosure. The foreclosure process indicates that you are behind on mortgage payments, which typically disqualifies you from securing a new loan. It's advisable to address the foreclosure situation first before considering a reverse mortgage.

Full question:

My mother is on the mortgage but not on the note for her home. This is a foreclosure. But my mother has a reverse mortgage that should be sufficiently large enough to pay of the original mortgage. Is the current mortgage servicer-Ocwen-legally obligated to provide her or the attorney for the lender providing the reverse mortgage with a payoff letter?

Category: Real Property
Subcategory: Foreclosure
Date: 04/07/2025
State: New York

Answer:

Please consult these links:

http://www.cnycn.org/index.php?option=com_content&task=view&id=49&Itemid=84

http://www.nyc.gov/html/hpd/html/homeowners/foreclosure.shtml

These are two organizations you should contact, and discuss the particulars of your situation with an adviser. Your situation is detailed and dependent on many variables - you would be best served by one of these organizations, which were created specifically to assist people being foreclosed on.

If the mortgage is paid off, then yes, the servicer should provide a pay-off letter.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Who owns your house in a reverse mortgage?

In a reverse mortgage, the homeowner retains ownership of the house while the lender holds a lien against it. The homeowner can live in the home without making monthly mortgage payments, but the loan must be repaid when the homeowner sells the home, moves out, or passes away. The lender has the right to recover the loan amount from the home's value at that time.

What will disqualify you from a reverse mortgage?

Factors that may disqualify you from obtaining a reverse mortgage include having insufficient equity in your home, being under the age of 62, not living in the home as your primary residence, or having unpaid property taxes or homeowners insurance. Additionally, if you have a significant amount of debt or a poor credit history, it may affect your eligibility.

Can you get a reverse mortgage if your house is in foreclosure?

What happens to a home with a reverse mortgage when the owner dies?

When the owner of a home with a reverse mortgage dies, the loan becomes due. Heirs can either repay the loan to keep the home or sell the home to pay off the reverse mortgage. If the home is sold, any remaining equity after the loan is repaid goes to the heirs. If the home is worth less than the loan amount, the lender cannot seek further payment beyond the home's value.

What does it mean to be on the mortgage but not the note?

Being on the mortgage but not the note means that you are listed as a borrower on the mortgage document, which secures the loan against the property, but you are not personally liable for repaying the loan as per the note. This situation can arise in various circumstances, such as when a co-borrower is added to the mortgage but not to the loan agreement.