One couple's story
This article appeared in That was part of the initial appeal to Ernest Minor, now 64. His wife faced multiple medical problems, bills were piling up, and Minor was persuaded by a broker to seek a reverse mortgage. There was only one glitch: At the time, Minor wasn't yet 62, the minimum age for obtaining a federally insured reverse mortgage. He says the broker suggested taking his name off the deed so that the loan would be issued solely to his wife, Norma, who was 68 when the loan closed in late 2005.
"The mortgage broker came to our house with a notary public and his own copying machine so that he could get all of the papers signed right on our kitchen table," Minor says.
After his wife died in 2007, Minor was surprised to receive a letter from Financial Freedom, saying that her death made the mortgage payable and that foreclosure proceedings would begin if he did not refinance or pay off the balance.
"The broker told me my name could be put on the mortgage as soon as I turned 62, but that never happened," Minor says. He says that he and his wife never understood that he risked losing the home. Initially, the couple received about $70,000 to pay off their previous mortgage and a lump sum of about $91,700 to cover medical bills, a new roof, and other expenses. But closing costs of almost $15,000 plus steadily growing finance charges pushed the total payoff amount to more than $200,000.
According to Minor, the home is now valued at only $130,000 and he can't find money to pay off the loan. Attempts to negotiate refinancing or some other solution with lenders have been fruitless.
Financial Freedom, in a letter, says it "acknowledges Mr. Minor's unfortunate situation and has repeatedly delayed foreclosure—which is required under HUD guidelines—for almost two years since his wife's passing to allow Mr. Minor time to find a solution."
HUD warns against removing a homeowner's name from a home's deed.
