What are the tax consequences of a defaulted reverse mortgage to an estate?
Reverse Mortgage has been stipulated by the Court as in Default. Does the loan count as income in the final estate accounting of the deceased? by John061251369 from , California. Feb 27th 2016
Justin Murray (JustinMurray)
#100 ranked lender in Illinois - 172 contributions
Income from a reverse mortgage is not considered income. Has a year passed since the last remaining member on the reverse mortgage has passed?
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
You should ask your attorney, but in general, if the property is not worth what is owed, then the property reverts back to HUD, and there is no claim on the deceased estate. The transfer of property back to HUD satisfies all of the outstanding loan regardless of it's amount. If there is equity, then the estate can sell the home and keep the remaining proceeds or refinance the balance to pay off HUD and keep the home as long as you wish. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347
Kay Cleland (kay@kcmortgagecolorado.com)
#30 ranked lender in Colorado - 229 contributions
Hello,You need to contact your CPA/Accountant to discuss tax consequences.
Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions
You may need to contact your CPA.
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