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We live in Maryland. My father in law did a reverse mortgage on his house while he was diagnose with dementia and Alzheimer. Can this be undone? Anyone know a good lawyer that can help?

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You need an Elderlaw specific attorney. The challenge will be in determining if he was competent when he signed those papers. Is he in the early stages? I would suggest that you look at elderlawanswers to start, they also have referrals for a lawyer in your area.
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There are questions the title company should have asked before he signed and if his dementia is advanced any reasonable person would know his condition. However, title people are NOT medical people, but the law states anyone knowingly signing a document must possess their faculties. Try calling the mortgage lender who handled this deal, produce documents saying he has dementia, and see what happens. Depending on the advancement of his disease will determine whether or not the reverse mortgage is cancelled. Again, where was the family in all of this? Did he drive himself for the signing? Good luck!
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I agree with Ferris and IsntEasy, who took him there? My Mom had dementia, forgetfulness but was not incompetent, just had to be reminded and could answer any question correctly for years, while living alone. No lawyer or financial person is going to say "oh yes he was demented but we did had him sign it anyway." Why do you want it undone anyway, if he needs the money for good care "at home" so be it, its his money right? Who is DPOA? Good Luck.
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Hi there, I wanted to chime in here as I am a reverse mortgage advisor and have been for 9 years. Are you saying your dad was diagnosed as having dementia prior to doing the loan? Or was he diagnosed after doing the loan? You father was counseled by a FHA approved counselor. This is a requirement before he can even consider applying for the RM. there are times that our borrowers do not want their children to know what they are doing and we must honor that but as a trusted advisor, I always encourage to bring in a family member or financial advisor. Especially if the senior is over 80 years old. If your dad had a diagnosis of having Alzheimer's prior to being counseled by the FHA approved counselor then contacting the lender would be a good step and producing documentation from a doctor that he was diagnosed prior to application. What was the reason your dad got the rm? To supplement his income? To pay off a mortgage that he could no longer afford, to pay for medical bills or treatment or to enhance his retirement? Anyway, I hope this helps! Good luck!! Linda
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I assume you're not within the several days you have to back out.
I agree with 'ferris1', try calling the mortgage company and explaining the situation. If it's a reputable company, they may let your FIL out of the loan for only the price of the settlement; not because they have to, but because they'll want to safeguard their good reputation.
A diagnosis of dementia or ALZ is not the same as being declared incompetent. To back out of the loan, if the mortgage company resists, could take an expensive court process. It's worth a consultation with a lawyer specializing in estates to see what you should do, within the terms of the loan, to minimize the damage.

'ferris1' – nowadays, the mortgage company will send a title agent right to your house to complete the settlement. That's how our refinance was done over the summer. Very convenient for us, but I remember at the time thinking that it would be a perfect way (as if there weren't already too many ways) to scam the elderly.
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thanks for the input
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What is so terrible about a reverse mortgage? In some cases, It can be a wonderful way for the elderly - without much income - to take advantage of the equity in their home. Unless he/she spends it all in an outrageous lifestyle change, it should be a boon to the elderly to have significant funds at their disposal, and unless all spent, there should be enough funds left to re-buy the bank's stake it in.
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I am reading through this. Both sides. Scam or helpful? Well, my dad was a victim of elder fraud. He was diagnosed with Alzheimer's 3 years before the RM. his daughter had him sign a POA and she is a mortgage officer/underwriter/processor since 1985. She took all the money and he financially suffered greatly until his death last month. She was arrested and admitted to taking 100% of the funds but with a 3 year statute of limitation on felonies in Missouri she is scott free. The bank, PA, attorney general, no one will touch this case. I have proved without a shadow of doubt along with a signed affidavit from his physician he was mentally incompetent. Did he pass the test that I hear so many of you speak of. Yes he did. And what a ridiculous test given by an individual with zero medical knowledge with only 10 questions where you can miss 4 of them. One question should be, do you have any medical disabilities as to which an elder could not receive this loan and there should be medical proof they are of sound mind and body to proceed with loan. The test was taken over the phone so there is no assuredy he was the one answering. Did he sign? Of course he did. He did whatever you said to do, he had Alzheimer's and he tried to act like he understood what was going on. It went as far as his physician calling senior abuse hotline on my sister for a state investigation where they had the POA removed. If there is an actual POA and the borrower is deemed mentally incompetent then a physicians letter must be presented to the bank. But the bank is big and powerful and the test taker does what ever to get this loan. There are not enough governing laws for this type of loan to protect our parents. I believe RM is the biggest mistake ever. Period. Can I provide for my dad, did I want to save his house, this is not about children's gains unless you are the one stealing from the RM.
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Geewhiz... I always said that the children should have to sign when a parent signs a reverse mortgage especially if they have a will already leaving the house to their children. Seeing so much of this now.
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I know that most seniors do consult with their family members before making the final decision, however those seniors that do not want their children to know typically have a reason for this. Even though the seniors have a living trust leaving their home and money to their children, doesn't mean it's the heirs money when they are alive. It's the heirs money after they pass away. Typically seniors seeking a reverse mortgage don't want to rely on their children financially and burden them, however always a good idea to discuss with their family who have their parents best interest in heart and not greedy on inheritance. I actually like the idea of a reliable party, family member and or attorney required to oversee the process (this is necessary for non borrowing spouses now), but we do have to respect their confidentiality in applying for this loan if they don't want their children to know. When I work with applicants, we always cover options as in talking to family members, wanting to sell and downsize, taking money out of line of credit only when needed, making payments on the reverse mortgage to stop it from growing. The FHA counseling that is required is wonderful and they must pass the understanding.. Many children are on the calls or meetings with their parents. Overall, this product is safe and wonderful and highly regulated and helping many seniors stay in their homes :)
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