Hey everyone, I moved into my home nearly two years ago, and shortly after, the elderly man next door passed away. He lived alone and had no visible family. After he passed, his family came to take his dog and clean out the house, but no one has been back since. For the last year and a half, a property management company has been cutting the grass and tarping the roof to keep it from falling apart. Just recently, I found out that the man’s children are involved in a lawsuit with the bank over the mortgage. I’m trying to understand what this means for the house. Can they just let the bank foreclose and sell it? What are the options for the family? It seems like it’s been going on for almost a year without much progress, and I’d love to have new neighbors instead of this vacant home.
If they let the bank sell it, they might not get the market value, especially if they’re behind on payments or owe more than it’s worth. They may need the bank’s permission to sell, which is likely why there’s a legal battle to figure out who has the rights to sell.
@Finn
How would I know if it’s going to auction? I’m really interested in that house.
Ren said:
@Finn
How would I know if it’s going to auction? I’m really interested in that house.
You could contact the mortgage company’s attorney, who should be listed in the court records, to see if a sheriff auction date has been set.
I think the mortgage lender is foreclosing due to non-payment. They must notify all interested parties in the legal filing, including the estate and possible heirs. The timeframe for foreclosure varies by state and whether someone buys the property at the auction.
@Ellis
That’s what confuses me. He signed a reverse mortgage, but why isn’t the house automatically the bank’s? It’s being foreclosed, but I thought reverse mortgages worked differently.
Ren said:
@Ellis
That’s what confuses me. He signed a reverse mortgage, but why isn’t the house automatically the bank’s? It’s being foreclosed, but I thought reverse mortgages worked differently.
Reverse mortgages allow the homeowner to live in the house while borrowing against its equity. If the owner passes, the heirs can either pay off the loan or let the bank foreclose.