[WSBAPT] Reverse Mortge Problem

[James B. Dolan]

Colleagues:

 

I have a client who is caring for her extremely ill husband in their home.
He will probably pass away or need to move to a facility in the very near
future.  Before they were married, he took out a reverse mortgage on the
home they are living in.  The language in the mortgage contract is pretty
clear that when he dies or leaves the home, it must be sold.  Because they
were not married at the time the reverse mortgage was obtained, she is a
"non-eligible" spouse.

 

Maybe some of you real property wizards can weigh in on Garn St. Germain's
applicability in this situation?

 

The Federal Housing Authority bulletin on this issue makes specific mention
of the "Non-Borrowing Spouse of the Deceased HECM Borrower:"

 

"If you are the non-borrowing spouse of the decedent, special provisions are
available that may postpone repayment of the HECM loan, allowing you to
remain in the property during your

lifetime. You must, however, provide your lender with a Non-Borrowing Spouse
Certification within 30 days of the last surviving borrower's death, among
other requirements."

 

Before contacting the lender and asking how to obtain such a
"certification," I thought I'd inquire whether anyone has dealt with this
before.  I read the HUD Non-Borrowing Spouse Certification form, and I am
not able to make it apply to the facts I have.

 

Any of you familiar with this scenario able to pull this rabbit out of the
hat?

 

Thanks in advance,

 

Jim Dolan

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