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heirs and reverse morgtage upon death of home owner?
Posted on August 24th, 2010 4 comments
MONIA M asked:
Is there any law when the heirs of a home with a reverse mortgage loan don’t let the lenders know borrower died and continue to receive the monthy payments and live in the house.what is the punishment
Cheryl4 responses to “heirs and reverse morgtage upon death of home owner?”
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Fraud is a federal time, I do not know the sentence, but the punishment would be heavy fines and time in a federal prison.
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Christopher K August 27th, 2010 at 03:00
That would be rather stupid. Why wouldn’t they just sell the home, and then get a lump sum for the equity?
A reverse mortage is just a loan against the equity, so they are just borrowing against their own money, and then paying interest on it. Reverse mortages have fixed terms as well, even if the person who took out the loan when ther term expires, then have to pay the mortage back in one lump sum, usually by selling the home.
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Rebecca August 29th, 2010 at 02:30
So in addition to pure fraud someone is going to commit forgery to get at this money they then send? What kind of people are you? Only the very ignorant and naive are stupid enough NOT to know that they have ways of finding out these things to protect from people just like you!
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godged August 30th, 2010 at 14:09
Fraud, criminal charges and incarceration are the punishment. Once the owner dies, the clock starts. You only have one year to sell the house, then the lender will begin foreclosure.
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Landlord August 24th, 2010 at 18:26