Hello Beverly,While I can't offer legal advice, I can explain how the reverse mortgage and lien process generally works.First, it's important to know that a reverse mortgage is a non-recourse loan. This means the only security for the loan is the property itself. Neither HUD nor the lender can pursue the estate or heirs for any shortfall if the property sells for less than the loan balance. Your parents paid for mortgage insurance to ensure this protection was in place. If the heirs want to keep the home, they can do so by repaying the loan or purchasing it for 95% of its current appraised value - whichever is less.Regarding liens: There are different types. The ones you're referring to, such as unpaid utility charges, typically run with the property. If the lender forecloses, senior liens (those recorded before the mortgage) may remain with the property and become the responsibility of the new owner - whether that's HUD or a third-party buyer. Junior liens (recorded after the reverse mortgage) are usually wiped out through the foreclosure process unless the lienholder steps in to protect their interest. This would require paying off the reverse mortgage or curing the default - something that typically isn't possible once the loan has become due and payable.As for the utilities: What specifically are you referring to as "mandatory utilities”? If the home is completely vacant and broom clean (i.e., all personal belongings removed and the property left swept and free of debris), you may want to reach out to the lender and offer to participate in a Deed in Lieu of Foreclosure. At that point, you can ask them whether they wish to keep the utilities active. Some lenders may want them disconnected; others may assume the responsibility and ask you to leave them on temporarily.Unless the lender or servicer requests otherwise, and no legal requirement exists, you're generally within your rights to disconnect the utilities once the home is vacated. If a lien is placed due to unpaid utilities, it typically becomes the responsibility of the future owner - not the estate - especially if the foreclosure process completes before any legal claim is pursued.Still, I recommend consulting with your attorney or the estate representative for guidance specific to your situation.

Hello Israel, Most lenders are only willing to allow the time needed to complete the transaction as long as they see the refinance progressing. What is the status of the refinance? Have you applied, and do you have a loan commitment from a lender yet? The reverse mortgage lender will not issue indefinite extensions, and if there is no finite end date, they may be unwilling to continue to wait forever. If they granted one extension already, they either knew it would not be adequate to complete the probate and refinance or were not given the accurate dates to complete the actions. I don't know what information they had or what has transpired, but if they were initially given the probate information and knew that the probate would not be finalized until December, I would suggest you put a package together for them that includes the probate information once again, the loan approval for the refinance of the loan and request the extension again. However, if you initially gave them an earlier date and then you plan to look for financing later and expect them to wait again while you start obtaining financing at that time, you may find that they are not willing to wait to file the notice of default. Remember. It still takes a while to foreclose, even after a notice of default has been filed. If the lender feels that things are being drawn out and that you are not ready to pay the loan off any time soon, they may start the process so that they do not have to wait and start a foreclosure that could take another 6 months or more later if you are unable to complete the loan payoff at that time. It is better for you to get the extension if you can, because it will save foreclosure costs, so I would strongly recommend that you have the documentation to show that the probate and new loan are all ready to proceed in December and then request the extension of the lender with that information.

Hello,This would be a question for a real estate attorney practicing in the state where the property is located. I recommend you seek legal advice. This is a legal question and may depend on the state's laws. I am unaware of anything that would make the prior lien of the lender unenforceable. I have an explanation for the refusal of the lender/HUD to accept the conveyance you describe. Still, without all the facts, it is only a theory on my part. The legal documents for the loan state that the lender's failure to enforce any provisions at any time is not a waiver and that they can be enforced later, but remember, the lender is under no obligation to accept a conveyance. Sometimes, doing so is outside the lenders' or HUD's best interest. If the borrower conveyed or deeded the property back to the lender (typically a Deed in Lieu of Foreclosure) and the lender accepted it, there would be no need for the foreclosure. There could be reasons, though, that the lender/HUD would not accept the Deed in Lieu. When a lender accepts a Deed in Lieu of Foreclosure from a borrower, if there are any existing liens, etc., the lender would "inherit" those liens and become responsible. On the contrary, any junior liens are removed during a foreclosure (unless a junior lienholder cured the default of the senior liens and foreclosed on the property themselves). To accept a Deed in Lieu of Foreclosure, lenders and HUD require a property to be "broom clean," free of all personal property and all other liens. If the property did not meet all of these requirements when the owner offered to return the property, they would not accept a Deed from the borrower. Instead, they would insist that the property go through foreclosure so that they could legally remove all other liens and personal property from the home without incurring liability for those liens or property. While I have no way of knowing if this might be why they did not accept any Deeds offered to them, it is usually why we find out that the Deed in Lieu of Foreclosure was not accepted. It does not violate any portion of the contract or any laws. That may be what happened in the case of the borrowers who owned your home before you.Regarding HUD offering the redemption to you, I have yet to gain personal knowledge about such matters. I can only repeat what I read on the HUD website. HUD outlines the redemption period on its website, stating that a redemption period is a period after a home has already been sold at a foreclosure sale (meaning HUD or a third-party purchaser at the foreclosure sale now owns the property subject to the right of the homeowner to redeem) where a homeowner may still reclaim their home. HUD states that many states have some redemption period on their website and depend on state laws (https://www.hud.gov/topics/avoiding_foreclosure/redemption). Since HUD is still involved, it was HUD, in this case, who became the owner at the Foreclosure sale. HUD states that to reclaim the home, you must pay the outstanding balance plus all costs incurred during foreclosure. I would certainly see what they are asking, and if the amount is over the current market value of the home, try to get them to lower it to no more than 95% of the current value of the home, but that might be the best they are willing to lower since that is the same price they are willing to accept from heirs. They know if they must sell the home, they will not get more than this on the open market. Their loan has always been due and payable since the borrower permanently left the property. The fact that they say they will let you redeem the property doesn't sound much different than purchasing a property known as Real Estate Owned (REO) or HUD REPO unless that redemption cost is less than the current market price. I can tell you this: HOA actions have been a huge financial disaster for many people. They look so attractive people think they are getting a unit at a very low price only to find out after they purchase the property that there is another loan or loans, often a reverse mortgage, on the unit about which they knew nothing and the combination of the delinquent HOA dues and the other lien balance(s) meets or exceeds the unit's value in many cases. We have written about this many times and recommend that everyone do a title search before buying any property at auction so you are not hit with any surprises later. Even if these are the circumstances for your situation, I still recommend that you contact an attorney because I cannot give you legal advice to determine what, if any, recourse you have (and again, I am only guessing at the circumstances because I do not have all the information).

Hello Mary,Now you are talking about property foreclosure rights under the state's laws, which can vary depending on the state and the circumstances. First, I would disclose that I can give no legal advice under the laws regulating lenders. Still, as someone with over 45 years of experience, the time to seek legal help is usually before the lender completes a foreclosure action. You must assert your rights before the title is granted to the lender on a foreclosure action. However, I suggest contacting a licensed real estate attorney as quickly as possible to determine what rights he still may have, if any, before any pertinent deadlines pass. There may also be legal steps the attorney can advise you to take to block any additional moves the lender would make to evict, but only the licensed attorney can tell you if that is possible.