The Consumer Financial Protection Bureau (CFPB) reports that the number one complaint they receive is from Non-borrowing spouses who survive the borrowing spouse and wish to keep the house. When the borrower spouse dies, the surviving spouse often faces foreclosure, despite the fact that they wish to keep the house. If they can add their income and other family members income, they are able to make the mortgage payments. But often mortgages are not assumable, specially reverse mortgages that have their own tables and do not permit assumption.
Good news from the Department of Housing and Urban Development through comes from their implementation of new rules to help non-borrowing surviving spouses in situations just like there. As of January 12, 2015, the mortgage companies must begin complying to help non-borrowing spouses with retention options, and allow greater leeway to defer loan payments after the death of the borrowing spouse. This permits them to stay in the house. The rules become mandatory for the banks after March 9, 2015.
If you are a surviving spouse, of either a regular mortgage or a reverse mortgage, and a non-borrower, contact us today to review your options.
The first consult is always free.
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Jacqueline A. Salcines
JACQUELINE A. SALCINES P.A.
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FL 33146
TEL. 305 669 5280
J.SALCINES@SALCINESLAW.COM