Home w/Reverse Mortgage disposal upon death.
MisterEd last edited by MisterEd
My father recently passed away. He had a will naming me executor. He has virtually no assets. He lived off his SS and his monthly reverse mortgage payment. His home (with the reverse mortgage) is in South FL (Broward County) is a 1BR condo and it’s about $60,000 underwater due to the ridiculously high appraisal he got about 10 years ago when he took the R.M. (about 3X what the condo was actually worth at that time). He owes $6000 on a 3 month old loan (basically a credit card loan that does not have a lien on the property) used to fix his bathroom due to his physical condition (why would a bank give a $6000 loan to a 91 year old man?). He owns a 2011 Nissan Sentra (free and clear) worth wholesale about $4000 due to having only 39,000 miles. My mom passed away a couple years ago. He does have a small IRA with a POD to me which they can’t touch. Since there are no assets we aren’t going through probate.
The R.M. bank gave us 2 (well, actually 3) options on how to deal with the home:
#1 - Walk away and let it go into foreclosure (could take a year or more).
#2 - Sign a Deed In Lieu of Foreclosure (DIL) actually signing the house over to the bank without going through foreclosure (supposedly could take 2-4 months).
#3 - Buy it (NO F’IN WAY!)
They said in either case we have no responsibility for the house. Any educated opinions between option 1 & 2??
chyvan last edited by
@mistered I’d rent it out and make some money off it until the bank forecloses.