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Reverse Mortgage Foreclosure in Chula Vista

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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 free consultation!

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 circumstances occurs:

  • 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!