Reverse Mortgage-Can The Lender Take The home?
My Grandmother’s home has a RM for $ 186k on it-the house has been appraised for $ 450k-so we don’t have to worry about it being “underwater”, however my uncle-who is the executor of her will only filed her information with Probate in April 2012 (she passed in July 2011)-the house is on the market, however my brothers and I have been served with papers from the RM lender because no payments have been made. I believe they are attempting to forclose on the house to obtain the RM payment. Although I know we could have applied for a 6 month extension, is that impossible now because proceedings have begun? Can the lender take the home from us? Can they sell it at auction and take their $ 186k and the heirs get the difference? Or because it is being foreclosed will everything be taken? Also, Grandma’s reason for filing for the RM was to obtain funds to get our Uncle out of debt-is it possible for us to sue him so the $ 186k is taken from his share? Any information would be useful, we live in the state of Connecticut. Our main concern is wondering if we will lose everything or just the $ 186k, or have the lender auction off the house for $ 250, take their share and leave us with next to nothing. Thank You!