New York recently made some changes to reverse mortgage laws.
What are they?
These are loans allowing seniors who are at least 62 years old to use the equity in their home while continuing to live in it.
This financial tool can help seniors who lack sufficient income to cover their living expenses.
According to a recent New York Law Journal article titled “Residential Foreclosures: Reverse Mortgage Foreclosure Protections,” the number of reverse mortgage foreclosures has seen an increase in New York.
This means many issues were unable to be resolved simply because the borrower was unaware.
The new legislation aims to fix some of these issues through creation of a special reverse mortgage pre-foreclosure notice.
These notices provide information regarding how the borrow has defaulted and the possible grounds for such defaults as asserted by the lender.
The lender must provide the homeowner with information about what payments are necessary to cure a default should it have to so with water or sewage charges, homeowner’s insurance, or property tax payments.
What does this mean?
The new law guarantees senior homeowners protections by giving them important information to avoid defaulting.
Knowledge is power.
In this case, it may be the key to keeping your home.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: New York Law Journal (May 11, 2018) “Residential Foreclosures: Reverse Mortgage Foreclosure Protections”