Tampa, FL asked in Estate Planning, Foreclosure, Real Estate Law and Probate for New Jersey

Q: My grandmother died with a reverse mortgage on her house with no co-borrowers. How soon can the lender take the house?

Family is searching for the latest Will. Nobody remembers the attorney's name to try to find her to get a copy of the Will. Can the lender call the loan due and/or foreclose on the house before the estate goes through probate? Can anyone else who lived in the house taking care of my grandmother get an extension on paying back the reverse mortgage? Can any potential heir get an extension before the Will is found proving they were to inherit all or part of the house? At what point in the process can the house be sold to get the money to pay back the reverse mortgage? If the lender takes the house and sells it, do they get to keep the amount of the sales price in excess of the loan or does the excess go back to my grandmother's estate? Also, is there a time frame on how soon probate has to be started after her death? Thanks!

2 Lawyer Answers
Morris Leo Greb
Morris Leo Greb
PREMIUM
Answered
  • Estate Planning Lawyer
  • Rockaway, NJ
  • Licensed in New Jersey

A: My best response is that you have raised many important issues that require extensive responses which are beyond the scope of the platform. The best thing to do is retain the services of an attorney who is familiar both with real estate law and probate law.

Nina Whitehurst
Nina Whitehurst
PREMIUM
Answered
  • Estate Planning Lawyer
  • Crossville, TN

A: This link answers most of your questions:

https://www.cumberlandlegacylaw.com/inheriting-a-home-in-crossville-tennessee-with-a-reverse-mortgage

I am in Tennessee, but reverse mortgages are governed primarily by federal law, so the timing rules mentioned in this article would be the same in New Jersey except for the actual foreclosure process, which varies by state.

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