I was considering to bid on a property that will be up for auction but I am trying to understand what is going on. This is what the clerk of court shows by the defendant (now deceased) 1. Satisfaction of Mortgage (Chase had the property in the foreclosure process) 07/2023 2. Home equity conversion mortgage filed from FINANCE OF AMERICA REVERSE LLC $1.5M 07/2023 2. Owner deceased 03/2024 3. FINANCE OF AMERICA REVERSE LLC files Lis Pendens 08/2024 4. FINANCE OF AMERICA REVERSE LLC wins judgement amount was $400K.
It appears to me the owner was in foreclosure with Chase but was able to get a 1.5M equity line out with FINANCE OF AMERICA REVERSE LLC. Shortly after the owner dies, the property goes into foreclosure.
My question - what might be reasons why the judgement amount is so much lower than the mortgage amount?
The borrower was behind and refinanced with a reverse mortgage which typically gets foreclosed on upon death as most of the time the balance is larger than the property is worth. Judgment amount is lower because of how a reverse mortgage works which continues to go up in amount owed over time
I was considering to bid on a property that will be up for auction but I am trying to understand what is going on. This is what the clerk of court shows by the defendant (now deceased) 1. Satisfaction of Mortgage (Chase had the property in the foreclosure process) 07/2023 2. Home equity conversion mortgage filed from FINANCE OF AMERICA REVERSE LLC $1.5M 07/2023 2. Owner deceased 03/2024 3. FINANCE OF AMERICA REVERSE LLC files Lis Pendens 08/2024 4. FINANCE OF AMERICA REVERSE LLC wins judgement amount was $400K.
It appears to me the owner was in foreclosure with Chase but was able to get a 1.5M equity line out with FINANCE OF AMERICA REVERSE LLC. Shortly after the owner dies, the property goes into foreclosure.
My question - what might be reasons why the judgement amount is so much lower than the mortgage amount?
Written into the reverse mortgage is that it is due and payable upon death or borrower no longer living in the property. It's a condition of doing the loan.
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