Hello my name is a0354jenny. Seeking answers about reverse mortgages.

[a0354jenny]

Hello:

Mother owns a house mortgage paid off. Mother puts her two daughters on deed with survivorship rights. Mother takes out reverse mortgage. Mother passes away. $450,000 is owed to bank from reverse mortgage. House goes up for sale at $325,000. Bank wants its money. Will the two daughters be responsible for any shortages in funds owed the bank? Can the bank sue for deficiency of funds? Please advise.

Thanks for your help.

a0354jenny

 

[That Lady in PA]

Read the reverse mortgage paperwork and seek legal help regarding the estate.

 

[hollydolly]

Welcome Jenny....

You may wish to put your question on the financial thread as well

Financial

 

[Aunt Bea]

Read the documents and talk to the lender.

Most reverse mortgages are non recourse loans that are limited to the value of the property.

There may be exceptions if the borrowers intentionally neglected maintenance or did something to decrease the value of the property.

 

[Tish]