Reverse Mortgage Foreclosure in Chula Vista
Call a Chula Vista Bankruptcy Attorney Now!
A reverse mortgage is a way for seniors to supplement their retirement
income by tapping into the equity they have obtained through their years
of mortgage payments and receive monthly stipends to their income. However,
when one of several circumstances occurs, the value of a reverse mortgage
becomes due or else the lender can
foreclose on the property. When this is the case, the owner or their estate could
risk losing the home to the lender.
As a firm of Chula Vista bankruptcy lawyers,
Denton Law Group understands how stressful and urgent a bankruptcy matter can be, such
as home foreclosure. With more than 25 years of experience, we have helped
numerous clients successfully navigate the legal side of their financial
issues with confidence, including helping many people keep their home
when they faced foreclosure. We believe that personal attention and capable,
diligent representation are the keys to your success, and we make it our
personal mission to help you obtain your goals through quality representation
and trustworthy, experienced counsel. We believe nobody should have to
face their financial troubles alone—reach out to us today and let
us work with you to resolve your issues and keep the home you have worked
so hard for.
Are you facing foreclosure thanks to a reverse mortgage? Call Denton Law
Group today by dialing 619-458-3739 and ask to receive a
When Can Lenders Foreclose?
A reverse-mortgage is a loan that allows a homeowner to convert the equity
they have built in their home to subsidize their income when they reach
retirement. Therefore, these loans are only available to older individuals
(age 62 or older) who have substantial equity in their home, or own it
outright. When you obtain a reverse mortgage, you essentially place your
home back up as collateral and then receive small loan payments based
on the amount of equity you have.
The balance of a reverse mortgage becomes due when one of the following
- All borrowers on the reverse mortgage have passed away
- The property is sold or ownership transferred
- The borrower no longer uses the home as their residence
- The borrower doesn’t maintain the property or meet the obligations
of the mortgage
When the balance of the reverse mortgage becomes payable, the estate or
borrower must re-pay the balance of the loan. If they fail to do so, the
lender may choose to move into foreclosure to recover the money loaned.
This leaves the property owner or the estate with a few options they can
use to try to save the home: they can repay the loan and keep the property
(including either the mortgage balance or 95% of the appraisal value),
sell the property and repay the loan with the proceeds, transfer the deed
of the home to the lender, or abandon the property entirely and allow
the lender to foreclose.
It’s not uncommon for lenders to aggressively pursue the money they
loaned, and they will frequently move to foreclose quickly if a condition
is met. Allowing your lender to foreclose is never the preferable option,
so you should speak with an attorney as soon as possible to review your
options and decide which is best for you if your lender attempts to begin
the foreclosure process.
Don’t hesitate to
contact Denton Law Group now and discuss your options when facing a reverse mortgage foreclosure!