Reverse Mortgage Lender Receives Mass. High Court in Foreclosure Case
A Supreme Judicial Court of Massachusetts reached a ruling in favor of a HECM lender during a foreclosure case, according to a recent Reverse Mortgage Daily report.
"The case involved James B. Nutter Company and three reverse mortgage borrowers, all of whom secured Home Equity Conversion Mortgages in 2007 and 2008," according to the report.
"Within the span of a few years, two had died and the third became too ill to remain in the home; J.B. Nutter then moved to foreclose by bringing actions against the borrowers or their executors in local land court."
The report also stated that J.B. Nutter's reverse mortgage paperwork contained language that points towards invoking the power of sale as permitted by state laws.
"That wasn’t enough to prevent issues: The form language doesn’t directly refer to the 'statutory power of sale,' which was insufficient to justify the lender’s power to foreclose after the death of a borrower or his departure from the property," according to Reverse Mortgage Daily.
"But despite the lack of legal specificity, the SJC found that 'no reasonable borrower' could assume that a reverse mortgage lender didn’t have the power to sell his or her property in the event of a foreclosure."
What's even more interesting about the case is the praise that J.B. Nutter's reverse mortgage product received from the court. To learn more about this case and the details behind the court ruling, click on the image above.