Q: Both parents passed 2017 reverse mortgage, 100,000 and counting insurance didn't pay for funeral are we liable?
My sister signed paper for funeral for insurance to go to them does that mean she has to pay for the Funeral? We were told if we don't either sell house or pay for mortgage then it falls to us and if we give it to bank it goes on our credit, it's a nonrecourse loan how is that true
A: You questions, as phrased, are too confusing for me to get an accurate picture of your situation. I don't know what you signed that would get you liable for your parents' reverse mortgage, but, under Virginia law, the house passes to you in intestacy if you are the proper heirs. As such, the mortgagor might need to proceed to foreclosure against you, and that may well show up on your credit report, even if it isn't your debt. You can solve that a number of ways, but the easiest, if the house has remaining value in excess of the reverse mortgage, is to sell it and pay off the mortgage. If the house is "under water" or "upside down" on the mortgage, a brief negotiation might result in the lender taking the deed in lieu of foreclosure. If there are other assets of liabilities of your parents, you can resolve them along with the house in probate. A simple telephone consult with a lawyer might get your situation sorted out in an hour.
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