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View Full Version : Discovering the house you rented has a reverse mortgage .


martinizing2
Jul 14, 2012, 09:48 AM
A friend of mine recently was offered a house to rent by a "friend" of hers.

He told her it was his fathers home and was available because he was out of state working on a new job.

He asked for first and last month rent and a security deposit which was agreed to and a dollar amount agreed on.

He was so helpful he actually moved a large portion of her property from the old home to the new one.

My friend ran into a delay getting the money on the day promised but would be only 24 hours late.

Her friend became absolutely irate and told her in that case he would refuse payment and she would have to move (which in this case because she had moved her belongings into the residence for 10 days he would have to evict her even though no funds were exchanged.)

Now I find that the owner ( her friends father) is actually incarcerated in another state and had taken out a reverse mortgage some months previously which his son ( the so called landlord) was aware of.

I researched this and I understand that you cannot rent a home with a reverse mortgage without the loan amount becoming due at that time. Since he is in jail and has no way of paying this ( he has not paid the taxes or insurance required by the contract for several months also )other than the sale of the property.
I believe there has been a fraud committed by the owner and/or his son in trying to collect the monies knowing the bank would force the sale to satisfy the reverse mortgage

What (if any) action or recourse does she have at this time?