Florida Ruling Could Impact Reverse Mortgage Firms Nationwide
The Hayes v. Reverse Mortgage Solutions, Inc. Florida court ruling in November 2018 found that an acceleration of reverse mortgage loan in terms of a borrower's death depends on how the loan was written, according to a recent report from Reverse Mortgage Daily.
“Where mortgage contract language makes clear that acceleration is optional at the mortgagee’s election, a definitive statement is necessary to accelerate the debt,” said Cathy Welker, an attorney at Bryan Cave Leighton Paisner, LLC based in New York, N.Y. according to the report.
“Here, the Court refused to find an acceleration based on the default of the borrower because that is not how the mortgage contract in this case was written.”
In this case, an expiration was a key factor in how the ruling was carried out. Therefore, Welker's advice to other reverse mortgage firms is to keep track of possible foreclosures.
A company should get on top of their foreclosures before it reaches expirations that would enable the statute of limitations. Meanwhile, the publication suggests that reverse mortgage firms also familiarize themselves with specific legalities are interpreted in its particular state.
To learn more about the particulars of the case, click on the image above.