Hello Rose, You can rest assured that your loan is secure and that your access to the funds in your reverse mortgage line of credit is guaranteed by the full faith and credit of the United States with your FHA Mortgage Insurance. When Live Well claimed bankruptcy, the servicing rights to your loan were purchased by RMF because they had value. They still have value, and RMF will sell/transfer those rights to another servicer pursuant to the terms of the Bankruptcy Agreement. If it should ever become necessary, HUD would step in and begin to service the loan themselves with their servicer, CELINK. Unlike a Home Equity Line of Credit (HELOC) offered by a bank that can be closed or additional restrictions can be added later, once your reverse mortgage has closed, your loan will remain in place under the original terms for as long as you continue to live in the property and abide by the terms of the loan (pay the property charges in a timely manner and reasonably maintain the home). You have no cause for concern because the terms will remain the same regardless of who services the loan. Your servicer will contact you with the new information, and you will continue to be able to live in the home with no payments owing on the loan, just as you have been.

Hello John,Novad is HUD's servicer of the reverse mortgage. They are not a life insurance company so they would not have a policy for your mom. If you are referring to the HUD mortgage insurance she got when she took the loan, that is insurance that protects the lender and investors against loss and protects your mom to be sure she always receives all monies due to her under the program. It also protects heirs so that no matter what happens to property values, they can never owe more than the property is worth, but it is not a life insurance policy that pays the loan off when she passes. If she has such a policy, that would be with a separate, life insurance company and you would need to file a claim with that company, not the loan servicer.

Hello David, The 95% rule is for heirs of reverse mortgage borrowers who wish to keep a home on which the loan balance is higher than the current market value. If you are purchasing the home and are not the borrower's heir looking to pay off the loan and keep the property, there is no 95% provision. HUD allows this because they know marketing the property and paying for the sale would probably eat up that 5% anyway and this allows heirs to get a 95% loan and keep the property if they so choose. It sounds like they may already be incurring the costs of the sale if they are going through the sale process. However, most all sales contracts have provisions which release the buyer from having to complete the transaction if the appraised value comes in lower than the purchase price so you should be protected in that you are not over-paying for the property. And if you already have a signed contract for a sale at a set price, if the appraisal comes in higher, Livewell can't raise the price either.

Hello Mark, There is no problem with you removing all his personal property. In fact, if you plan to contact Live Well Reverse Mortgage to let them know that he has moved once you are done, the property will have to be "broom clean" and his possessions removed anyway for you to have all options open to you. If the reverse mortgage balance owed is higher than the value of the home, you really have two options, you can choose to keep the home and pay off the loan at 95% of the current value which would be less than the full amount owed or you can choose to allow the lender to take the property so you don't have to try to sell the home which obviously will not sell for more than current value to pay the loan in full anyway. If you choose to let the lender take the property, that could happen one of two ways, through a foreclosure action or by you Deeding the property to the lender in Lieu of Foreclosure. If you choose to Deed the Property to the Lender in order to speed the process, you must remember that the lender is going to require the documentation that you have the legal right to act on behalf of your dad if he is not capable of signing on his own. If dad still has capacity, he can sign the paperwork himself or he can grant Power of Attorney (POA) to you now that gives you full authority to act on his behalf so that you can handle all the paperwork for him. Remember though that if you go the POA route, you will also need letters from his doctor and one other doctor (usually a second doctor in his office can perform the exam and write the letter -it is a quick examination that allows them to determine competency) that states he is of sound mind so that the POA is valid. You send this information to the lender and the lender will then work with you on the disposition of the property. Otherwise, the Live Well cannot give you confidential information about the loan by law. If dad lacks capacity, and you do not already have the legal documents in place to act on his behalf, it would take a court conservatorship and you may choose just to let the lender proceed with the foreclosure instead -that would have to be your call. Getting back to the "broom clean" comment for the Deed in Lieu. If you have authority to act on dad's behalf, once the home is cleared of all of dad's personal belongings, the home must be generally clean. Not scrubbed from top to bottom but "broom clean", meaning all debris must be gone. At that point, if there are no additional liens against the property, you can approach the lender about giving them a Deed in Lieu of Foreclosure. This helps the lender because it mitigates further losses and it helps dad and the estate because it ends the liability on the home once the lender has the title. Dad or the estate still has the liability should anyone enter the home or get hurt on the property and the sooner the property can be sold or transferred to the lender, the better for dad or the estate. In this case, since a sale by you or dad is probably out of the question, it may be better for all if you can get the property back to the lender as soon as possible to end all liability for the family, if possible. If you have any questions about the Power of Attorney, liability issues, etc., I would strongly suggest you discuss with your family attorney or an estate attorney.