oldpanamfan
New Member
My father just passed away 1 month ago, I am the only child, only surviving beneficiary, & executor of the will, which was probated 2 weeks ago. He had a reverse mortgage with a balance of 180K. I am/was living in the home. Home value is about 200K in today's market. He had 50K of credit card debt. I was told to hire an attorney to petition for an insolvent Estate. The reverse mortgage co. says I can stay in the home for 6 months to try to sell it (I do not have the money to buy it-had cashed out my 401k's in the last years to help out my parents, Dad was disabled & Mom died 8 months ago.) After a free consult with an attorney, I was told there is a 9 month wait to petition the court for insolvency. In the meantime, I cannot sell the home because I cannot obtain a quit claim deed. The homeowner's insurance company is dropping coverage next month because I don't have a quit claim deed. The bank will force a policy & add it to the loan amount, but they said this will more than likely eliminate the possibility of them granting me an extension past 6 months. If I don't sell the home prior to 6 months, they will foreclose. If they foreclose, I won't have money to pay for an attorney or pay for my move. Not to mention the longer I wait, the higher the reverse mortgage loan will be, thereby reducing any proceeds to pay off debts. What should I do?
