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I have a reverse Mort. that is under water, I owe more than the house is worth. I have been paying over a 100.00 a month for mortgage ins. I dont want to go through a Short Sale, I would rather just give them the Deed and walk away from the house after giving them a months notice. I understand that the Mort. Ins would pay the holder for any short fall in the price that the house is sold for. What I want to know is can they hold me responsible for any payments? It is insured by the FHA as there is a FHA nbr. on the Mortgage document. Thank you for any info u can supply V Pucci stugotz2@yahoo.com
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A reverse mortgage is a non-recourse loan. That means that the mortgage company cannot come after you for any deficiency. So yes - you can just walk away, and stop paying the mortgage insurance, and no no one can come after you.
Answered on Aug 29th, 2013 at 3:26 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship