[WSBARP] Reverse Mortgages and Foreclosure

[Andrew Hay]

I just completed one of these with an estate.  I told the creditor we just wanted to make sure there was no deficiency or liability to the executor and would sign an order to avoid a hearing.  They sent me a proposed order that was exclusively an in rem judgment against the property and that took care of it.

A

Andrew Hay
Hay & Swann PLLC
201 South 34th Street
Tacoma, WA  98418
Phone: (253) 272-2400
Fax:     (253) 267-8947
www.washingtonlaw.net<http://www.washingtonlaw.net/>


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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rich Holland
Sent: Tuesday, March 17, 2015 10:06 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Reverse Mortgages and Foreclosure

Well, as it happens, our firm handles these daily  when they go back on the market.  While I am speaking from observation and not from legal standing at the moment, I have never seen the bank pursue a deficiency because it impacts the length of the redemption period and they mostly want the property back where it inevitably seems to end up back with FNMA as seller.  Certainly it must happen on occasion but remember not only does the lender have the security but HUD insures these (there are always two DOTs on title.  One in the name of the lender and one in the name of HUD).

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Monday, March 16, 2015 4:45 PM
To: 'wsbarp at lists.wsbarppt.com'
Subject: [WSBARP] Reverse Mortgages and Foreclosure

I rarely encounter these, and have never seen one foreclosed upon.  If a bank judicially forecloses on a reverse mortgage in WA, they cannot obtain a deficiency judgment against the debtor because it is a reverse mortgage is a nonrecourse loan, correct?


Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.

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