walked away from reverse mortgage and bank sold house…can I get another loan or is my credit ruined?
I’m sorry. Let me explain. My mother is 80 yrs old and took a reverse mortgage on her home when her husband passed away. The reverse mnortgage allowed her to stay in her home until she passes away. She was “allowed” to use the equity so to speak in her home to maintain living there. She has pulled all the allowable amount of money out of the mortgage and the lender is telling her she should move back home with her children.Due to the housing decline, she owes more than the house is valued at. The bank is telling her that until they sell her house, she will not be able to get another home loan. Others are telling her that she will not anyway, because her credit will be ruined. She is moving home only due to failing health and needs to be close to relatives but does not want to live with her children.With the “credit ruined” she thinks she will not even be able to put utilities in her name. That just does not sound right.