Reverse Mortgage - Deed in Lieu Of

[mqflowers]

What is the name of your state (only U.S. law)? Margaret, CA
Good Day,

My parents received a reverse mortgage many years ago and they have been living in their home without a mortgage payment. They have now exhausted all of their equity, which is what my dad wanted to do. He is now deceased and my mom can stay in her home, mortgage free, as long as she's living. However, I now have to move my Mom with me in Georgia due to her age and health.

Here's the situation, they are now $218,000 to the bank and, with this economy, there's no way that I will be able to sell her home for anything over that to make a profit or repay the bank. It looks like my only option is to turn the house back over to the bank. As my parents have gotten all of their money back out of the house. If I keep the house, I'd have to pay someone to maintain the lawn, I'd have to keep the electric on for the sprinkler system to water the grass, and I'd also have to keep the water on.

I know that things are slowly turning around for the housing market; however, I don't believe that I'll ever be able to make a profit and also be able to repay the bank, and each month the interest is added along with a service fee.

What do you think?

 

[HUD-1]

Once your mom permanently moves out, the loan is due and payable. The lender will allow a reasonable time for you to sell the property. Ask the lender about putting it on the market and allowing a short sale. If this doesn't work, then attempt a deed-in-lieu of foreclsoure. Worst case scenario is that they foreclose on the property.