FHA/USDA question

[davensl]

What is the name of your state? Mississippi
I need to ask a question about USDA Rural Development. My mother is a widow and my father left her in a bad situation. He had her cosign papers for a FHA home and never told her what she was signing. She has been paying monthly on this home since 1985 and on her statement it says she owes $8,000 to pay it off, but when she goes to pay it off they tell her that it will be $75,000. I have had people look at this info and they have told me that the type of payment plan that she is on is meant to never be paid off. Now here is my problem, I help take care of my mother and I will be moving to another state soon and she has to come with me. So since she cannot pay the house off can she just turn it back over to them and walk away without them garnisheeing her Social Security check? Any information that anyone could give me would be greatly appreciated.

davensl

[HomeGuru]

Originally Posted by davensl

What is the name of your state? Mississippi
I need to ask a question about USDA Rural Development. My mother is a widow and my father left her in a bad situation. He had her cosign papers for a FHA home and never told her what she was signing. She has been paying monthly on this home since 1985 and on her statement it says she owes $8,000 to pay it off, but when she goes to pay it off they tell her that it will be $75,000. I have had people look at this info and they have told me that the type of payment plan that she is on is meant to never be paid off. Now here is my problem, I help take care of my mother and I will be moving to another state soon and she has to come with me. So since she cannot pay the house off can she just turn it back over to them and walk away without them garnisheeing her Social Security check? Any information that anyone could give me would be greatly appreciated.

davensl

**A: contact the FHA loss mitigation department.

[Samm1970]

Sounds like you have a reverse mortgage. Was the loan taken out after both of your parents were 62.5 years of age?

If it is reverse, there should be equity in the home because lenders can only lend on about 65% of the properties value - something like that. Have you considered selling the home? Get a free market opinon from a reputable real estate agent. Continue investigating what type of loan you have as I could be wrong.

Also, that $8,000 might be cash you have available from the reverse mortgage.

[davensl]

Thanks HomeGuru and Samm1970 for the advice and info.

davensl