Reverse Mortgage PurchaseUndoing the mortgage purchase
A mortgage bank does not usually own the house, even if the mortgage is reversed. When I take out a reverse mortgage credit, does the creditor own my house? So I think you can buy the house from your parents via a standard house purchase transaction (maybe you can prevent realtors from becoming involved), and then your parent will use the money to repay the mortgage.
When you buy the home for an amount that exceeds the amount of the credit, it does not matter to the institution that holds the credit. You' probably going to have to get a new credit from somewhere to fund the purchase.
Discharge of bench from reverse mortgage collective lawsuit of survival successor to German mortgage lending crisis
The U.S. District Court for the Northern District of California on January 3 rejected an alleged class-action lawsuit claiming that a U.S. federal government failed to comply with its Home Equity Conversion Mortgage Deed of Trust and HUD rules by failure to submit a notification of a living successor and the ability to purchase the real estate at 95 per cent of its estimated value.
Courts found that the clear text of the instrument does not call for such notification, in part because the appropriate section of the instrument requiring the creditor to give notification of when the credit becomes due and payable as well as an option to purchase the real estate for 95 per cent of its estimated value before enforcement (i) expressly does not involve the mortality of the debtor as a causative factor and (ii) confers on the debtor the right and not the interest of the debtor's successors.
It also dismissed the heir's allegations that HUD rules require the same notification and occasion to purchase. However, the Tribunal ruled that the HUD rules were not included in the document, and even if they could be interpreted in such a way that an inheritor could make use of the 95 per cent rules, the HUD interpreting of those rules in force at that point demanded full repayment of the liability.