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She took out a reverse mortgage on her house probably 7 or 8 years before her first stroke. Someone bought the mortgage off of the reverse mortgage company. She didn't make a dime and since then, her health has gone downhill. She has the beginning of Dementia and I'm trying to get her on Medicaid and into an assisted living facility, but I have to prove that she didn't make any money off of it. I need a couple of documents from the reverse mortgage company, but she can't remember the name of the reverse mortgage company. So, how do I find the name of it? Please, if anyone can give me advice on this. I'm just overwhelmed by it all. Thank you in advance. Renee3842

She kept no records? What happened is the other mortage company bought her debt. She should have been made aware of that. Did she get the money in one lump sum or every month? The new company should have done the same thing the original did.
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Renee, another possible approach could be finding the detailed info on the chain of recordings (eg Deed of Trust) on that property your mom owned. There should be a way to see this on the County Clerks office section of the County website. If not County Clerks may be in Chancery Court section of County website. May be called “land roll”, “real property registry”.

You should be able to search by her name or if she was married by the husbands name. Once you find it, pay attention to the legal description (like write it down, take a screen shot, print it out) because this is very import to use to reference the house legally. (Like if you contact HUD). Then you do a timeline of when from the time mom first bought the house and then the filings for the RM and then who RM sold it to. Hopefully your State allows actual price paid to appear as opposed to “Ten Dollars and other valuable consideration” on the purchase agreements. But whatever, the legal recordings should have the owners name, when title transfer happened and the lending institutions involved if the buyer needed a mortgage.

The actual Promissory Note or Reverse Mortgage Agreement does NOT have to be recorded at the courthouse. That is something that she (she has to do it not you) should have and if she lost it, then she has to do a request to the lender or the service provider or HUD to get those initial documents. But the info recorded for this property as per land records gives mom somewhere to start mailing letters to.
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Run a credit report on her, should show up there.
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I don't know what you mean by "she didn't make a dime off of it." A reverse mortgage is a loan. It is payable usually upon exiting the home and going into care, meaning the home is often sold in order to pay the loan. It is usually a high interest loan.

I would go to an attorney with whatever evidence you have of Mom's accounts, whether she was receiving any monthly payments. If she never got any then she never had a reverse mortgage, imho. But you are going to need to clear all this legally before applying. This is not something you can be wrong about.

Currently who is receiving all of your mother's mailings? Does she save mail? There will be statements from this company. Also go through all of mom's old tax work if there is any. Go through all of her papers. If ultimately you cannot find anything it is time to turn this over for investigation by an attorney who will know where to look.

Yikes, so scary when we don't know what's going on, isn't it?
Hope you'll update us.
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igloo572 Nov 11, 2024
I bet what the OP meant was that when the house was eventually sold, the balance of the loan exceeded the value that the property was eventually sold for. Like the mom had a 200K home owed outright and she got slightly under 50% of its value from the RM as the “draw” she could get from her RM. So say the RM paid her 100K. But there are fees, interest, perhaps other costs added to the 100K. Like she allowed the RM to place homeowners insurance, flood insurance and those premiums added to the 100K. Voila! 3 years later all the 100K has been paid to mom. But the loan is now at 145K. And every year as long as she stays in the home, more interest, insurance added on. When it finally sells for 190K, Zero $ to mom as her loan all-in so far plus costs to get it cleared, cleaned and market ready totaled 225K. There was a gap of 35K that the RM lost on doing this deal.

Now if it’s a HUD backed RM, HUD will pay the difference. HUD will pay the RM the “35K gap”. That HUD pays any gap that happens is why most RM lenders do loans as HUD participating. HUD will have the records somewhere…

Now if the situation was identical but the home in a hot primo location and sold for 400K. Mom would have gotten paid 210K.

This is why LTC Medicaid is asking. They want to make sure the sale didn’t pay mom $. I’m sure there a standard form for RM close outs that is done. That’s what they need.
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If it was a HUD backed RM, they should have it somewhere. HUD is federal, it’s Housing and Urban Development. The vast majority of RM are backed by Hud. So it’s probably in a federal file by State somewhere.

HUD divided into 10 regions across the US and there are field offices. Go to the HUD.gov and start your drill down. Someone in a field office knows how to access old HUD backed RMs. Good luck Nancy Drew!
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