(Source: MoneyWatch By Ilyce Glink) – Imagine losing an elderly parent only to find, while still grieving, the family home your parents purchased is going to be foreclosed on by their lender. According to a release issued late last week by the AARP, this is exactly what happened to Robert Chandler of Elk Grove, CA.Chandler’s mother, Rosemary, passed away in 2010 leaving behind a reverse mortgage on the property the family has owned since 1940. When Chandler offered to purchase the property at its appraised value, the lender, Wells Fargo, insisted he pay off the full mortgage balance. This is contrary to both the terms of the contract and federal reverse mortgage law. Like so many others, Chandler was never given notice of his right to purchase the property for its current value.
“The surviving spouses and heirs of reverse mortgage borrowers are losing their homes all over this country,” says Jean Constantine-Davis, a senior attorney with AARP Foundation Litigation. “This should not be happening. These families are protected by the law. People should know that they have rights, and lenders need to honor them.”
Source: MoneyWatch By Ilyce Glink
Aug 8, 2011
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