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The Dangers of a Reverse Mortgage

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foreclosureAlthough the number of reverse mortgages backed by the U.S. Department of Housing and Urban Development (HUD) significantly dropped in the past year, from its high of 114,412 to 57,977, there is still a concern for seniors who took out reverse mortgages prior to the rule change Congress approved. The new rule offers seniors a repayment plan that will help past-due customers avoid foreclosure. However, people like Frederick Feil, who took out a $353,000 reverse mortgage in 2011, falls outside of this rule change and risks becoming homeless.

Feil is 67 years old and fell behind in property taxes while hospitalized. He continues to have health problems and has to undergo dialysis treatments even as he continues to fight the Finance of America Reverse from throwing him out of his Howard Beach home. They are calling for Feil to pay back the entire balance of $449,583.85, including interests and other charges.

Initially, Feil believed taking out the reverse mortgage would contribute to a more comfortable future, but it eventually became the ultimate nightmare. Vulnerable citizens like Feil risk being out on the streets during a time in life when comfort and peace matter most. Instead, Feil faces medical bills, costly repairs to his home as a result of Superstorm Sandy, and the impending foreclosure, which he fears his attorney may not be able to help him obtain a grant for the owed property taxes.

Atlas Consumer Law, we treat every financial situation as unique and can help you decide what the best course of action is for your future. If you are trying to save your home from foreclosure, we can deliver the legal services you need to achieve your goals and attain some peace of mind. We take the consumer law rights of our clients very seriously. Call us now at 312-313-1613