AboutYan Ross Expertise Reverse Mortgages are a financial tool available to homeowners of the age of 62 or older. They are not for everyone. Mr. Ross provides responses to questions regarding eligibility, terms, consumer protections, financial requirements, and all other aspects of HUD-sponsored and other private program Reverse Mortgages.
Experience In addition to my legal and general business experience, I have trained with John Bennett, of Home Lending Specialists, the leading and most experienced originator of reverse mortgages in the country. I have mastered both academic and practical aspects of the reverse mortgage business, with special emphasis on consumer protections.
Education/Credentials Author, Certified Home Equity Conversion Mortgage Specialist (CHECMS) course, Institute of Consumer Financial Education (ICFE)
Bachelor of Arts, Princeton University --
Juris Doctor, Yale Law School --
Accredited Educator in numerous professional disciplines
Question We were just denied a reverse mortgage on a condo by Wells Fargo.Reason:Construction lien on whole complex.Lien is for $298,000 on clean-up lawsuit after eight million resteration.What do I do now?WE need cash to sustain us above social security income.
Answer Richmond,
First, there is probably not a direct way to avoid the lien on the overall condo complex. While I can't give you legal advice, and especially without knowing in which State you are located, it is unlikely that the first-lien position required by a reverse mortgage can be accomplished while the overall lien is in place.
I would suggest that you take several steps to find out the status of the overall lien and the likelihood that it could be removed in time for you to proceed with your reverse mortgage.
I assume you are working with a specific loan officer at Wells Fargo, so ask that person to find out whatever is available on the overall lien issue. Depending on who holds the overall lien, and the prospects of getting that resolved, you might try to see if they might provide you with a partial release, in order to allow Wells to get a first-position security interest for your reverse mortgage.
If it looks like the overall lien and lawsuit may be resolved sometime soon, perhaps you could delay your own closing date on the reverse mortgage.
In the meantime, see if there are family or other close resources who could help you out with current income until they could be repaid out of the proceeds of a reverse mortgage.
I would caution against taking on credit card or other high-interest debt.
I hope that helps, though recognize it is by no means an easy situation.
You may follow up with another question if you need clarification.
