Case Study: Reverse Mortgage and Avoiding Foreclosure (Part 2)

Reverse Mortgage Foreclosure Part 2

Hi Orange County!

Pat Morrison here with Liberation Home Solutions!

This is part 2 of our 2-part video series in which we follow one of our client’s journey through her process of avoiding foreclosure on a reverse mortgage. In Part 1 we spoke about our client’s situation: She inherited a property that had a reverse mortgage on it. When the title transferred to her, the sum of the reverse mortgage became due. As a result, our client went into foreclosure. Read further to see the steps our client took to help her with avoiding foreclosure.

We came into contact with the client and offered her 4 options for avoiding foreclosure:

  1. Try to refinance the property. Why? Because anytime you come into contact with us, with a foreclosure situation, our first option is to try and help save your home by avoiding foreclosure. Why? Because we believe that if we have the capacity to offer someone a merciful solution to their situation, then we should!
  2. Make the client a cash offer on the home. This would enable her to sell her house fast for cash, take the equity and move forward with a fresh start. 
  3. Make the client a cash offer on the home and then rent it back to her. This would keep her in the family home, and allow her to rebuild her credit. We would then offer her a lease option agreement to give her a pathway to re-owning the family home.
  4. Do nothing, suffer an auction, and lose all influence over the situation. (Never a good option in our opinion!)

What did our client choose?

As the story goes, Covid-19 hit, and that changed the game for this client. With all gatherings being shut down, the trustee sale was postponed and she was given time to come up with a fifth highly creative option: This client was able to transfer the title to a trusted family member who was able to refinance the property, satisfying the reverse mortgage and ending the foreclosure. The family member then transferred the title back to the client as a tenant in common. Now the client gets to keep the house, rebuild her credit, move forward with life, and most importantly: rest easy at night without the threat of foreclosure looming over her!

But we didn’t end up buying the property, so why tell the story?

I tell this story to bring you some hope. If you are in a similar situation, you’re likely under a lot of stress. The burden of the foreclosure is like a weight on your shoulders, and you may not know what to do. You may not have even told anyone about it and are trying to deal with it on your own, hoping it might go away, but knowing that it won’t until you take the right action. If this describes you, I want you to know that there are options, and there are people that can help walk you through the process to help show you those options so that you can make an informed decision, and relieve the burden and stress.

For more tips on avoiding foreclosure, check out this post.

If you’d like to discuss your situation, or see what we can offer you, call or text us at 949-41-MERCY that’s 949-416-3729, or go to our website: www.lhsmercy.com Fill out the form on top of the page and we will be in contact with you.

For more helpful content, be sure to check out our blog at www.lhsmercy.com/blog.

Remember: Mercy leads to freedom, and freedom comes from Liberation!

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