He took all the money. Exactly 1 month after signing a REVERSE MORTGAGE contract, my grandmother was hospitalized and diagnosed with Dementia. And is now in a ling term care facility. She willed her home to me, her only grandchild the home.(that had NO mort.) He was bankrupt and his home was in foreclosure. One lump some of money PLUS a $10,000 line of credit he took all at once. Lost it all, including HIS home. Now, Im stuck with a hefty loan that grows FAST each month. Also, IF the home ISNT my grandmas PRIMARY RES. the loan is Default, and DUE! Its not My loan, and she has NO CLUE as to the facts of whats happened. She thinks Im in the home I always wanted, hers, and ALL IS WELL .
SAD.
My father DID show DPOA, signed mt GM into facility.One month after he convinced her that a RM was the only way to get $ NOW, to save His home, being foreclosed on. She has No Idea her home is "gone" basically. She WAS VERY Diagnosed & admitted with severe delerium/dementia There was an option for a line of credit, $10,000.. used by him to buy a car..
When admitted to facility by father, he claimed HE was MDPOA & I was FDPOA.
I Was NOT though. Facility filled suit against ME vor back SOC pymt. CASE DISMISSED.
I AM FURIOUS W/father BUT LUV AND CARE FOR /ABOUT MY GM. I Took care of her ALONE for 2 years, knowing nothing about senior UTI, DELERIUM,HALLUCINATIONS,THE VOICES PARANOIA AND ALL THE EXTRAS . NOT A PENNY. IM NOT IN IT FOR THE MONEY. I JUST WAS WANTING TO FIND A outWay to keep MY GREAT GRANDPARENTS HOME in my family, which derives of my 3. Children that each spent time living there w/her. I apologize for the LONG WINDED BLAH BLAH BLAHS but wanted to follow thru and thank you for your time
"One lump some of money PLUS a $10,000 line of credit he took all at once."
A RM lender will not take a subordinate position, so it had to hold the first mortgage. Are you saying that your father also took out a HELOC on the home?
This doesn't make sense as any HELOC lender would have done a title search and discovered that the property was subject to an RM, and that the HELOC would be in second position (i.e., a subordinate lien). Lenders are savvy enough to know that it's unlikely the RM would be paid off when your GM dies, and that any HELOC loan wouldn't be paid off either as the RM would take title to the house to satisfy the debt, and to the best of my knowledge, wouldn't have to pay off a subordinate lien.
So how could he get an RM and a HELOC as well, or are you saying that he took a $10K draw under the RM?
At the risk of being accused of being unkind, what I think is really sad is that grandmother has dementia, is in a care facility, and her granddaughter seems to be furious with her father, with no sympathy for his situation, and is also outraged that what she expected to inherit is now allegedly encumbered by a reverse mortgage.
Is anyone worrying about Grandmother?
Please note that with reverse mortgages one does not get 100% of the equity of the house. And I believe your Grandmother has one year of being in a continuing care facility before the reverse mortgage becomes due and payable... that is because some people with reverse mortgages get well and return to the house. But in the mean time property taxes, homeowner's insurance, and utilities need to be paid.
By the way, if your Grandmother needs to go unto Medicaid and Medicaid places a lien on the house for the rest of the equity, the amount of money your Dad took would either need to be paid back by him or Medicaid could deny services in that amount.
When your Grandmother passes, then and only then will you get possession of the house.... BUT... there are liens on the house now... first one is with the reverse mortgage which would need to be paid in full along with the interest and fees... and possibly a second lien with Medicaid.