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OrioleBeagle
12-12-2011, 01:09 PM
Across the street in our townhouse development is an empty house. The owners retired and moved back to Canada. When it rains hard it floods into the neighbors basement (especially if there is a power outage). The power is shut off in the empty house so there is no electricity to run the sump pump. Assuming that it was a foreclosure, the neighbor contacted their mortgage company. A few weeks later, the mortgage company sent someone out to investigate. The neighbor found out from the investigator that it is NOT a foreclosure and that the owners had done a reverse mortgage. Does it violate the terms of a reverse mortgage to leave the house unoccupied?

Who is liable for the damage to her home?

milanessa
12-12-2011, 01:17 PM
I'm no expert but my next step would be to contact my property insurance agent. They should know who's liable. Was this going on when her neighbors lived there? Did she complain to them then?

If I was her I wouldn't worry about their reverse mortgage and whether or not they're in violation of it - she ought to be concentrating on the damage and getting fixed. The other is really none of her business.

OrioleBeagle
12-12-2011, 01:24 PM
I was also wondering if an empty house would nullify the home insurance.

milanessa
12-12-2011, 01:31 PM
I was also wondering if an empty house would nullify the home insurance.

I repeat - she needs to contact her own insurance company. Believe me, they don't want to pay and they have the resources to sort out the legal details.

suep1963
12-12-2011, 03:45 PM
The home that you have the reverse mortgage is suppose to be your primary residence, and you need to sign a paper every year declaring that you are living there.

attyfan
12-12-2011, 04:02 PM
Milanessa is right ... first thing OrioleBeagle's neighbor needs to do is contact her own property insurer. It is likely that the reverse mortgage is recorded, so that someone (such as the neighbor's insurance company) can find out who issued the mortgage ... and let them know. However, the reverse mortgage company would not be liable for the neighbor's damage.

gloreline
03-21-2012, 06:24 AM
Reverse mortgage is a loan for seniors whose age is 62 years old and above. There is just a little known financial product known as a reverse mortgage. A reverse mortgage basically sells the equity they hold in their home to a lender. It's usually only open to older individuals, but more have been getting them, and at a younger age. You may read more on this article: Number of people getting reverse mortgages climbing (http://personalmoneynetwork.com/moneyblog/2012/03/16/reverse-mortgages/)

Prancer
03-21-2012, 06:28 AM
I was also wondering if an empty house would nullify the home insurance.

It likely will if they don't have empty house insurance, and they probably don't.

I had to insure my mother's empty house after she died and it was $1000 a month THEN. I can't imagine how much it is now.


I repeat - she needs to contact her own insurance company. Believe me, they don't want to pay and they have the resources to sort out the legal details.

Absolutely; insurance companies go after other insurance companies like sharks.

Debbie S
03-21-2012, 05:09 PM
I believe that reverse mortgages require the house to be sold within a year after the owner no longer occupies it (i.e. the owner dies or goes into a nursing home). I would assume that a move to Canada meets the definition of no longer occupied. But that's for the insurance and mortgage companies to sort out. I agree that the homeowner should contact her ins co and let them handle it.