Legal Question in Wills and Trusts in California
Sticky probate issues
Three siblings. Only asset is house owned by deceased that has a reverse mortgage on it. One of the siblings is a paraplegic and has been living in the house for years. The other two sibs want their share of cash out of the deal and the house is for sale while the disabled sib tries to finance. Problem is, he can't qualify for a new loan. He's got a friend who is willing to try to buy the house for him but it's been just over a year since the dad died and we understand that with reverse mortgages you only have a year to pay off the loan so the question is twofold. One, does that year time frame run from the date of death or from the date the leinholder files the deed and two, what happens if the house isn't sold at the end of that year period? Can/will the bank foreclose on the house?
1 Answer from Attorneys
Re: Sticky probate issues
If there is a probate, doesn't the personal representative have a lawyer? The terms of the reverse mortgage are governed by the note. If the note is in default, the lender can foreclose. A trustee's sale normally requires at least 120 days from the notice of default before the property is sold to the highest bidder.
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