Finance of America Reverse Foreclosure Defense

While many people are familiar with traditional foreclosures, they are not as acquainted with reverse foreclosures. Reverse mortgages are one type of mortgage loan borrowers can obtain, and they are vastly different from conventional mortgages. Finance of America Reverse is one of the many companies under the umbrella of Finance of America.

If you have a reverse mortgage with Finance of America Reverse, LLC, and they have notified you that they are going to foreclose on your home, you need sound legal advice. Below, one of our Fort Lauderdale foreclosure defense lawyers explains more about the process and the possible defenses in these cases.

Complaints Against Finance of America Reverse, LLC

Finance of America Reverse, LLC, claims that it wants to help older people as they enter retirement. Unfortunately, this is not always the case. The company has a 1.57/5 rating on Better Business Bureau. 15 complaints against the company have been closed in the last three years, with four of those being closed in the last 12 months. Many of the complaints listed are as follows:

• Unfair fee increases: Finance of America Reverse, LLC has been accused of unfairly increasing fees for elders, some of whom are disabled. In some cases, the institution was increasing fees and interest by as much as $200 a month.
• Premature reverse foreclosure proceedings: Many clients complained that Finance of America Reverse requested documentation that could prevent foreclosure from happening. Even after borrowers collected and submitted the requested documentation, the institution initiated foreclosure proceedings anyway.
• Inconsistent information: Many borrowers have also complained that Finance of America Reverse is inconsistent when providing them with information. The bank has been accused of making verbal agreements but when they are put into writing, the terms vastly differ from what was said.
• Unnecessary fees: One of the most frequently cited complaints on the BBB website against Finance of America Reverse is that the company delays the process by asking for duplicate or unnecessary documentation. When the delays cause HUD deadlines and other important timelines to expire, the borrower then has to pay fees that they would not have had to otherwise.

Unfortunately, the above are just a few of the most common complaints against Finance of America Reverse, LLC. If the bank has treated you unfairly or dishonestly, it may serve as a foreclosure defense.

How Do Reverse Mortgages Work?

For many, a reverse mortgage sounds like a dream come true. When you have a reverse mortgage, you do not make monthly payments to the lender. In fact, the lender sends you money, allowing you to pay for your expenses, usually in retirement. The mortgage only has to be repaid when the homeowner moves out of the home or passes away. Heirs often sell the home to fulfill the mortgage debt obligation but sometimes they keep the property and repay the loan.

There are many different versions of reverse mortgages offered by different lenders. Still, the most common type is a home equity conversion mortgage (HECM). These types of reverse mortgages are backed by the Federal Housing Administration (FHA). The borrowed amount is based on the appraisal value of the property, subject to FHA limits. HECMs are only available for homeowners who are 62 years of age or older.

While reverse mortgages are vastly different from conventional loans, lenders can still foreclose on them.

What Could Cause a Foreclosure on a Reverse Mortgage?

While homeowners do not have to repay HECM with monthly payments, they must still meet several requirements to avoid foreclosure. These are as follows:

• The appropriate property taxes and homeowners insurance must be paid and kept current, as well as related fees such as condominium or homeowners association fees.
• The home must be maintained properly and kept in good condition.
• The home must be used as the borrower’s primary residence, which means not living anywhere else for a period of more than six months for a non-medical cause or 12 consecutive months in a medical facility.

If you fail to meet the above requirements, Finance of America Reverse, LLC may place you in default on the loan and prompt the lender to initiate foreclosure proceedings.

How Do Reverse Foreclosures Work?

While the concept of a conventional foreclosure may seem fairly straightforward to many people, the same is not always true with reverse foreclosure. The process of a reverse foreclosure involves the following steps:

• After a borrower has defaulted, the loan is considered due in full and must be paid within approximately 30 days. The time limit will start when Finance of America Reverse notifies the U.S. Department of Housing and Urban Development (HUD) of the default and the reason for it.
• Finance of America Reverse, LLC must notify you that the loan is due and payable in full within 30 days. They will send you a demand letter outlining the different deadlines you must meet regarding how you will bring the loan back into good standing.
• After Finance of America Reverse has sent the demand letter, the bank may order an appraisal of the home within 30 days.
• Finance of America Reverse has only six months from the date the loan is considered due and payable in full to start legal action.

If Finance of America Reverse has threatened to take legal action against you, it is critical that you speak with a foreclosure defense lawyer. Once a foreclosure lawsuit has been filed against you, a lawyer can advise on the best defense strategy that can help you keep your home. The best defense may be as simple as correcting a defective condition on the property that can bring the loan back into good standing.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Fight Back Against Finance of America Reverse, LLC

If you have been notified that Finance of America Reverse, LLC is initiating a foreclosure action against you, our Fort Lauderdale foreclosure defense lawyers can help. At Loan Lawyers, our experienced attorneys are well-versed in the reverse mortgage foreclosure process and we will put that expertise to work for you. Call us now at (954) 523-4357 or fill out our online form to request a free review of your case and to get more information.