Reverse Mortgage

jacab9901 · Joined: 25 Jan 2007 Posts: 2

I have an elderly friend (86 yr old man) who recently lost his wife this year. Prior to her death (probably while she lay on her death bed) an investment company representative approached my friend and offered, what he was told a reverse mortgage. He was told he would never have a bill to pay for the rest of his life and that he can live out the rest of his life in his home. He lives on a monthly fixed income.

This gentlemen has a 3rd grade education and is not quite literate. My fear for him now is that he has been told to moved out of his home because this company owns the home and that they will be making repairs in order to move in themselves, before the end of the year. My God its almost December.

Can someone point me in the right direction as to who I can seek help from to check the credibility of this investment company and to provide some answers to my friend. Even to get documentation of what was signed. He does not have in his possession ANY signed documentation by this company because he was told by them, not to worry "we take care". The company representatives would approach my friend in a drinking establishment to have him sign paperwork on various occasions.

Oh, by the way my friend's wife was buried and all arrangements were made by this investment company with the representatives claiming to be "family", because my friend is their "uncle". My friend's burial plot has been changed to this company representative’s name along with my friend's name on the deed?

m2c · Joined: 03 Aug 2005 Posts: 937

Any here I thought only Realtors used this ghoulish sales tactic!

A reverse mortgage MIGHT be a solution to some situations – usually large equity in home, limited income, and limited desire to pass the “homestead” on to heirs with relatively the same equity as currently exists.

Big fly in the ointment is that you indicate your friend IS NOT IN TITLE but the home is owned by someone else who is about to force him (presumably a renter) to move. Reverse mortgage should work with a non-owner but perhaps someone has thought of a shady move to bilk the system.

kameron_213 · Joined: 25 Jan 2007 Posts: 1

You need to get your friend to an attorney as soon as possible, whether a private attorney or a legal services attorney and of course the reverse mortgage is not necessarily a bad option in this case - What is bad, are some of the companies selling the reverse mortgage AND other "investment opportunities" - Even with limited details, this sounds like something that your friend should seek professional help.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

I agree with the two above, it's definitely something you need to seek an attorney about.

Kam, I took out the companies information you posted seeing as how it has absolutely nothing to do with your post.

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

Jacab,

I'm not sure where your friend is located, but in order for them to take posession of the house, he had to sign something that was legally recorded. Check with the county clerks office or wherever you live, the government entity where deeds are recorded. Or even better, go walk into a nearby title company, ask to see the attorney and/or owner and tell them this story. They can pull all of the recorded documents. That's the first step to finding out what your friend signed.

Secondly, you need to get his heirs involved in hiring an attorney and more than likely will need to work towards having the attorney certify him as being unfit to sign those documents. The end result, just warning you, is that this may leave him legally unable to live alone and that's why you want his heirs involved now. He is facing big-time decisions no matter what happens.

Lastly, once you have some facts straight, call the local newspaper and television stations. For the newspaper, ask for anyone who write on senior issues. For the television look for that reporter who does stories on people getting taken advantage of. More than likely, media pressure will really help your friend out. He is an easy story to run with if what you perceive has happened is true.

I admire your willingness to get involved in this situation but I assure you he did NOT GET A REVERSE MORTGAGE. More than likely, he signed a warrantey deed of some sort titling the property over to these other people.

good luck.

robert_tito · Joined: 30 Apr 2008 Posts: 27

Reverse mortgages are powerful tools that help eligible homeowners obtain a tax-free cash flow. Over two hundred thousand people have already used Reverse mortgages to enhance their retirement. A reverse mortgage is a government sponsored and insured loan that requires no payments during the period of time you live in your home. Reverse mortgages enable eligible homeowners to access the money they have built up as equity in their homes.

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