What is the name of your state (only U.S. law)? Michigan
I have heard that there is a clause in reverse mortgage fine print that states if the reverse mortgage involved fraud then the original owner gets to keep their house.
Quick Question: What are the specifics of this type of fraud and what legal proof is needed to make a case?
More information:
This question involves a great aunt (We will call her Sue), her niece (Mary) and Mary's son (Frank).
Sue inherited her house and the land on it from her parents over 40 years ago. She took care of her parents in their old age and they left it to her because of this. None of her siblings disputed this, and it was common knowledge. Despite the sole ownership, it was always considered 'The Family Farm' and everyone in the family was welcome to stay up there anytime. As Sue got older, she looked to her family to take care of her and her niece volunteered.
A few years into this, Frank got into legal trouble and needed money to pay for legal defense. Mary convinced her aunt, Sue, to reverse mortgage her property to pay for it, and Sue agreed. Instead, Mary kept the money and blew it on herself and her other kids.
Mary eventually got power of attorney of Sue and did a lot more damage, financially and emotionally. Recently, the rest of Sue's family intervened after Mary put Sue in a nursing home. There is currently a police investigation into Mary's actions which include financial exploitation and elderly abuse.
I don't really think this is fraud, but none of us want to see Sue lose her house and the money owed for the reverse mortgage is far out of our reach. To the rest of the family, it feels like Mary stole the house from her. I'm hoping there is something legally that we can do that we just don't know about.
I have heard that there is a clause in reverse mortgage fine print that states if the reverse mortgage involved fraud then the original owner gets to keep their house.
Quick Question: What are the specifics of this type of fraud and what legal proof is needed to make a case?
More information:
This question involves a great aunt (We will call her Sue), her niece (Mary) and Mary's son (Frank).
Sue inherited her house and the land on it from her parents over 40 years ago. She took care of her parents in their old age and they left it to her because of this. None of her siblings disputed this, and it was common knowledge. Despite the sole ownership, it was always considered 'The Family Farm' and everyone in the family was welcome to stay up there anytime. As Sue got older, she looked to her family to take care of her and her niece volunteered.
A few years into this, Frank got into legal trouble and needed money to pay for legal defense. Mary convinced her aunt, Sue, to reverse mortgage her property to pay for it, and Sue agreed. Instead, Mary kept the money and blew it on herself and her other kids.
Mary eventually got power of attorney of Sue and did a lot more damage, financially and emotionally. Recently, the rest of Sue's family intervened after Mary put Sue in a nursing home. There is currently a police investigation into Mary's actions which include financial exploitation and elderly abuse.
I don't really think this is fraud, but none of us want to see Sue lose her house and the money owed for the reverse mortgage is far out of our reach. To the rest of the family, it feels like Mary stole the house from her. I'm hoping there is something legally that we can do that we just don't know about.