Tuesday, March 29, 2011
Surviving spouses can lose homes on reverse mortgages after HUD change; AARP sues
Washington DC ABC affiliate WJLA reports a problem with reverse mortgages (HUD link here).
Both spouses (when legally married) should always be on the document. If one passes away, and the other isn’t on the document, and the home becomes delinquent, loses value, and subject to foreclosure, HUD will no longer “protect” the other resident. It’s not clear how this could affect gay spouses in states with same-sex marriage.
AARP has sued HUD over the change. Tina Johnson-Marcel has the story on the AARP site here.