Financial Advice

The Lender Treated Me Unfairly When My Parents Died With a Reverse Mortgage

Question:

Dear Steve,

BELOW IS PART OF MY SECOND COMPLAINT TO THE CFPB, WHICH IN DESCRIPTION DOES NOT ALLOW ANY NAMES. FINANCIAL FREEDOM, SHAPIRO & INGLE AND BRUNSWICK COUNTY WERE SUCCESSFULLY ABLE TO INTIMIDATED MY 80 YEAR OLD PARENTS WITH HARASSMENT AND FEAR THAT 10 DAYS AFTER THEY FROZE HIS BANK ACCOUNT, THEY WERE BOTH FOUND DECEASED. THERE MONTHLY INCOME WAS ONLY THERE EARNED SOCIAL SECURITY, LIVED CHECK TO CHECK. HOW IS THIS LEGAL, ETHICAL, HUMANE AND PROMOTED? HOW LONG WILL IT TAKE FOR THIS TO CHANGE? THIS DID NOT HAVE TO HAPPEN.

ON JANUARY 31ST, MY PARENTS WERE FOUND DECEASED, ONE FOR SURE SUICIDE, THE OTHER STILL UNSURE, WAITING ON AUTOPSY. AFTER THERE DEATH, KNOWING THIS WAS A REVERSE MORTGAGE, I CALLED THE “COMPANY” TO EXPLAIN THE SITUATION, ALSO TO FIND OUT HOW MUCH TIME WE HAD TO GET 45 YEARS WORTH, MY ENTIRE LIFE, OUT OF A FAIRLY LARGE HOME.

I DID NOT HAVE THE SPACE AT TIME. I WAS TOLD BY THE “COMPANY” AFTER I HAD TO SCAN MY PARENTS “TEMPORARY DEATH CERTIFICATE” BOTH STILL PENDING. I ALSO HAD TO SEND MY OWN INFORMATION FOR THEM TO EVEN SPEAK TO ME REGARDING THE ACCOUNT. I WAS TOLD I WOULD BE NOTIFIED.

QUITE THE CONTRARY, AFTER A COURT HEARING THAT NO ONE BOTHERED TO INFORM ME OF, THEY STARTED SEIZING THE HOUSE WITH A LOCK ON THE BACK DOOR. LUCKILY THEY DID LEAVE THE FRONT DOOR OPEN. ALLOWING ME TO MOVE SOMETHINGS TO A STORAGE BUILDING MY FATHER BUILT THAT WAS NOT ON THE REVERSE MORTGAGE. THEY HAVE SEIZED THAT NOW TOO, WITHOUT CHECKING PROPERTY LINES. MANY THINGS OF MY PARENTS THINGS ARE NOW MISSING AND I HAVE NO IDEA WHO TOOK THEM NOW THAT THE BANK HAS ALL ACCESS.

I FILED A COMPLAINT WITH THE “CFPB” A COUPLE OF MONTHS AGO AND HAVE ONLY HEARD FROM A REPRESENTATIVE ONE TIME. THAT’S IT. THE ONE TIME I SPOKE WITH THE “COMPANY” AFTER CLAIM SUBMITTED, HE SAID HE WAS MAILING ME INFORMATION REGARDING THIS SO CALLED “INVESTIGATION”. I HAVE YET TO RECEIVE ANY INFORMATION. I REALLY DO NOT UNDERSTAND WHY MY OUT OF GOOD WILL I EVEN CALLED TO LET THEM KNOW. THE DEATH CERTIFICATE IS NOT LEGAL YET.

MY SIBLINGS AND I WENT TO COUNTY OFFICE WHERE WE FOUND OUT NOTHING CAN BE DONE WITH THEIR PROPERTY, DUE TO DEATH CERTIFICATE NOT BEING COMPLETE. WE HAVE HAD A BUYER, BUT UNABLE TO OPEN ESTATE, YET THEY HAVE SEIZED HOUSE WITHOUT EVEN SENDING A NOTE. THIS IS AMERICA, HOW AND WHY DOES OUR COUNTRY ALLOW THESE BANKS TO RUN ALL OVER PEOPLE WITH NO CARE CONCERN OR EVEN A NOTE. AND TO TAKE WHAT THEY WANT OUT OF THERE HOUSE. THAT WAS NOT IN THEIR AGREEMENT. TO LOCK A BUILDING NOT EVEN ON THAT MORTGAGE.

THE ICING ON THE CAKE, IS THE HARASSMENT AND THE FREEZING OF THEIR BANK ACCOUNT IS ULTIMATELY WHY THEY COMMITTED SUICIDE.

MY FATHER WAS A SUBMARINE VET AND BELONGED TO THE COASTAL CAROLINA SUBMARINE VET ASSOCIATION. HE SPENT 8 YEARS IN A SUBMARINE AT 6’3″, IN THE FIRST COUPLE OF NUCLEAR SUBMARINES EVER MADE. HE TRULY BELIEVED HIS COUNTRY WOULD ALWAYS BACK HIM UP. SADLY THIS IS FAR FROM THE TRUTH. MY MOTHER WAS A RN AT WAKE MEDICAL CENTER FOR 27 YEARS SAVING HUNDREDS OF LIVES, AND THIS IS HOW THERE LIFE HAD TO END? BECAUSE OF BANKS AND MORTGAGE COMPANIES? AFTER THE FIRST COMPLAINT TO CFPB AND NO RESPONSE, I HAVE LITTLE FAITH THEY WILL DO ANYTHING. I AM PRAYING YOU CAN.

I BEG YOU, IF THESE WERE YOUR PARENTS, HOW WOULD YOU FEEL?

How can they continue to do this? DO YOU HAVE ANY SUGGESTIONS OF WHAT I CAN DO, SO THIS DOES NOT HAPPEN TO ANYONE ELSE’S PARENTS?

Shannon

Answer:

Dear Shannon,

I’m so sorry to hear about your issues and the sadness of your parents death.

Typically when the parties of a reverse mortgage pass away the executor of the estate has about 30 days before the lender starts to move forward.

The lenders first step would be to get an appraisal on the property and let the heirs know if there is equity available so they could pay back the reverse mortgage and keep the property. If there is no equity then the heirs will need to hand the keys to the house back to the lender to avoid a foreclosure.

It is unclear from your question when your parents passed away and when the lender held a court hearing. You can update me in the comments below.

You and your siblings should hire a real estate attorney who is licensed in the state where the property is located. If there was an issue with the court notice, that’s one thing, but the attorney can represent your legal interests with the lender if they broke the law or failed to give you an extension you may have requested to clean out the house and sell it.

The bottom line though is after the death of the last person on a reverse mortgage, the heirs who have any property on or in the real estate that the entire property secures the reverse mortgage of, should promptly clear out all belongings.

I’m not confident the lack of a final death certificate is a material issue. It seems undisputed that your parents have died and if a funeral home was involved in dealing with their remains, often the funeral homes notify Social Security of the passing and the lenders monitor the death records.

If you continue to feel the lender has treated you unfairly, since you live in North Carolina you can file a complaint with the Office of the Attorney General.

Steve Rhode

Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

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