We were contacted by the daughter of the deceased person who had a reverse mortgage on a probate home. The lender with the reverse mortgage was less than helpful to the family. The family, who resided with their mother for over twelve years helping care for her, did not want to sell the home. While the home was owned by their mother, it was their home too.
Reverse Mortgage Probate
We have talked to several people over the years who believed the bank with the reverse mortgage owned the home. This is simply not true. The title to the home is in the name of the borrower.
Of course, we would be happy to sell the property as a probate home, however not until we did all that we could to help them keep the home. If our lender could not help them, and all options were considered, then we will agree to list.
We connected the family with a lender with a lot of experience with reverse mortgages. In fact, she has direct access to the person who was not being helpful to the family. To protect privacy and confidentiality, there are details we will not share here.
Our trusted lender qualified one family member (the husband of the daughter we spoke with) for a conventional loan. The reverse mortgage was paid off and the title was transferred to the husband and the daughter. The family was able to keep their home. With Proposition 19, the property tax basis did not increase.
There are reverse mortgage pros and cons. Of course, there are reverse mortgage rules. With this family and the lender working with the family, the end result was a huge win for the family.
If the family member could not get a mortgage loan they would have been forced to sell and we would list the probate home. If they had to sell, the family would have inherited the money from the sale. However, they would not have been able to afford to buy a home in the same area because homes are selling for three times the amount and the property taxes would also increase exponentially.
There was a series of other administrative matters that were necessary. This is among the many reasons it is important to work with qualified professionals that know what they are doing! We often see how innocent people are harmed by hiring the wrong people who pretend to know but don’t know what they don’t know. Our referral resources are the best of the best in the industry.
Probate Real Estate and Trust Real Estate Services
As a Certifed Probate Real Estate Specialist (CPRES), we offer an initial complimentary 30-minute consultation. During the consultation, we gather the information we need to determine the needs. If it is legal in nature, we will refer to an attorney if that is what the person wants. It is not uncommon for people to want or expect us to give legal advice. We are not licensed to practice law therefore legal matters must be addressed with an attorney.
If a home needs to be sold, if necessary we schedule a follow-up call. Otherwise, we gather the facts and determine the next steps. In most cases, the next step is for us to see the home. We review the market data to determine a recommended list price and make recommendations for what needs to be done to prepare the home for the market.
Our resources and expertise is reserved exclusively for our clients.
We agree on working together, or not. If we agree to work together, the next step is to sign the listing agreement. That is the document that empowers us to work on behalf of the estate representative. If the home is part of a trust estate we need proof of the trust and the person hiring us is named in the trust as successor trustee.
If the home is a probate home, with or without a reverse mortgage then we need the certified copy of Letters Testamentary or Letters of Administration. If you need help contact Kathleen Daniels to request a consultation.