Legal Question in Consumer Law in Texas

My 78 year old mother recently did a reverse mortgage with New Day Financial. I feel like she was taken advantage of and did not clearly understand the terms of the agreement. Her understanding was they paid her around $21K for her house and the property it is on and she would no longer be paying her monthly mortgage payment, but would be responsible for insurance and property tax. She thought that in the event of her death, the property would go back to whoever she had designated executor of her estate. If I understand correctly, in the event of my mother's death or inability to stay in her home, the house and property would then belong to New Day Financial. I believe she was taken advantage of, pressured and mislead. Is there anything that can be done and if so, what steps would need to be taken?


Asked on 5/31/10, 1:06 pm

1 Answer from Attorneys
TC Langford Langford Law Office

You need to hire an attorney to review the documentation she signed, to assess the damage done. It may be possible to avoid the contract if your mother was incompetent, or if you can prove she was defrauded. Simply realizing that you made a bad deal, is not sufficient to undo a contract.

Read more
Answered on 6/07/10, 10:26 am


Related Questions & Answers

More Consumer Law questions and answers in Texas