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Reverse Mortgage on a property where one owner has a court appointed guardian

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noel1cent

Junior Member
What is the name of your state (only U.S. law)? FLORIDA

I am a joint owner of property, me and my mother. My mother has a court appointed guardian in charge of her affairs because she can not understand or speak anymore. My sister is the guardian. I am trying to get a reverse mortgage on the property. The lender at the last minute in the process (2 months so far) has decided they want a new court order which is specific to the reverse mortgage. They are asking us to go to court and for a judge to issue an order that the guardian can sign the reverse mortgage paperwork. The original order gives the guardian authority to "act as plenary guardian, ... with full power to have the care, custody and control ..., to exercise all delegable legal rights and powers ..., to administer the property ... according to law, ... "

Why do we need another court order ?
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? FLORIDA

I am a joint owner of property, me and my mother. My mother has a court appointed guardian in charge of her affairs because she can not understand or speak anymore. My sister is the guardian. I am trying to get a reverse mortgage on the property. The lender at the last minute in the process (2 months so far) has decided they want a new court order which is specific to the reverse mortgage. They are asking us to go to court and for a judge to issue an order that the guardian can sign the reverse mortgage paperwork. The original order gives the guardian authority to "act as plenary guardian, ... with full power to have the care, custody and control ..., to exercise all delegable legal rights and powers ..., to administer the property ... according to law, ... "

Why do we need another court order ?
Because the mortgage company requires it...

If you don't want to (or can't) fulfill the request, then you may wish to find another lender.
 

HUD-1

Member
Not sure if it is an FHA/HUD HECM, but here are those requirements, which it sounds like you meet:

Court-appointed conservator or guardian may execute any necessary documents, including the mortgage loan application. The lender must provide evidence that the conservator or guardian has authority to obligate the borrower.
 

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