Need advice

[guitarman2]

Some time ago my parents who are in their elder years 75 + if you will, received a reverse mortgage in order to gain some financial refuge concerning medical debt. All though reverse mortgages in most cases claim to be a way out of debt for some elders, it has been proven that reverse mortgages can be harmful to any heirs left behind. That being said I am not convinced neither of my parents were aware at the time of receiving the reverse mortgage could have and will have a negative outcome. For those of you who may not know what is involved with a reverse mortgage, I will explain. A reverse mortgage is offered to individuals 62and + years of age who may take a line of credit against the equity in their home. The home will undergo a current market and surrounding area appraisal to determine the amount of credit issued. Generally reverse mortgages carry a very high interest rate as well.

Stipulation guidelines for a reverse mortgage is the borrow(s) must maintain the residence as their main dwelling. They can not rent, lease or sell the property. If the borrower(s) vacate said residence or expire to death, this in return gives the Government funded agency, in this case "Financial Freedom" the right to foreclose on the property. A short time after my parents received their reverse mortgage, about a year after, they had determined they were unable to maintain and upkeep their home because of their age and medical reasons. They with the help of myself and my two other brothers determined it would be in their best interest to seek out assisted living. This in return as I mentioned before would give Financial Freedom the right to foreclose on their home, however between my parents and myself, myself being a first heir of the estate was able to avoid foreclosure through myself taking over the house. After experiencing a divorce that is exactly what I did. However Mom and Dad are not getting any younger and it could be any season now, both of them return home to our Father in Heaven. I failed to mention both of them have to pass on in order for the lending institution ( "Financial Freedom" )to process foreclosure.

My question is this. I am aware I should first seek out counseling through my Bishop, but I was wondering if anyone has experienced this and is there any help through the church on receiving financial assistance to help or pay back this reverse mortgage for myself and my two children whom I have 50% custody of. I am currently employed an active member, full tithing payer, dedicated to my current calling in my Elder's quorum and I am trying the best I can to make the best of receiving only 24 hours a week on the job with no future encouragement of advancement or raises and no benefits. Yes this sucks!!! I am very grateful and blessed for my employment please do not get me wrong and I am, on a daily bases always searching for better employment in my community. Well anyway I realize there are people and members of the church who are worse off then I am, but I was just wondering if there was any assistance anyone knew of through the church or has anyone here on this site experienced what I am talking about.

Thanks

Edited March 16, 2014 by Eowyn
edited out name of facility

[kaydell]

In addition to asking for advice from your bishop, I would discuss the matter with other people, oh, like you are here. There's your home teachers and your quorum leaders and friends and family.

Ultimately, I would consult an attorney for an advisory opinion. Attorneys can be expensive, but it can be more expensive to accept legal advice from somebody who isn't an attorney. If you don't have all of the paperwork, you could go to a title company and have them pull the records which are required to be filed with the county.

My attorney only charges $25.00 for the initial consultation for a half hour.

Attorneys are professionals like doctors are professionals.

Seeing an attorney to make sure that things are done right to prevent problems is like seeing a doctor to get a shot to prevent problems. There is preventive medicine for medicine and likewise, there is preventive law for law.

[skippy740]

The Church cannot help with this. Why?

1) Reverse mortgages are typically done as a 'last resort' option for reasons you specified.

2) Trying to preserve and keep the house "in the family" is trying to preserve your inheritance. Church Welfare resources will not be used for this purpose. They are used to help with basic necessities of life, and to help you get back on your feet.

Aside from looking for additional employment opportunities, I don't see how they can help. However, it is NOT a bad idea to simply ASK. It's always better to ask and find out, than to just take anonymous advice over the internet.

I recommend searching for "consumer credit counseling reverse mortgage" and talk to a credit counselor. BTW, this was (should've been) a requirement prior to taking out the reverse mortgage.

If it can be proven that your parents didn't understand (cognitive impairments), or they were taken advantage of, you may want to contact an Elder Abuse Attorney in your state with the details of your situation.

[guitarman2]

Skippy I am not sure my parents were advised of the "consumer credit counseling reverse mortgage". If they were they would have had to sign some type of document agreeing they understood, correct? I will research this further and find out if my parents signed such document concerning "consumer credit counseling reverse mortgage".

Thanks