Legal Question in Real Estate Law in California

I am the Beneficiary on my parents trust, who are both deceased. My mother passed in Dec/2009. I worked with the lender on her Reverse Mtg, following all the rules, and wanted to refi into another Reverse Mtg in my name. They would need to modify their payoff demand to work with the unside down market, the amount owed is more than the home is worth. They would not do anything and not they have started foreclosure with a Notice of default, how can I stop this? The property has been in the family for years and I want to keep it.


Asked on 1/07/10, 6:18 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, we also need to know the trustee of the trust. Probably you. If not, whoever is the trustee needs to be dealing with these matters, not the beneficiary.

Next, as far as I know, you cannot refinance into a reverse mortgage, and somebody should have told you this by now. It's not because reverse mortgages cannot be rewritten; it's because you are probably too young to meet the reverse mortgage criteria, and in any event since the concept of a reverse mortgage is pulling out your equity, and you admit there is no equity in the house, it cannot be done.

If you want to keep the house, you need to pay off the loan. Anything else is like asking for charity -- i.e., "modify their payoff demand" -- as I see it, the lender has no duty nor any motivation to reduce their demand.

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Answered on 1/12/10, 9:14 pm


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