Forclosure Stopped for 91-Year Old Widow

interior Mid-February, I posted about a 91-year old widow who was losing her home to foreclosure simply because her husband died. What happened is that the loan officer who did their reverse mortgage (a program that enables seniors to take cash out of their home equity) wrote the loan in the husband’s name only. Mr. and Mrs. Ogle didn’t understand what was happening, because there was paperwork for each of them to sign. They didn’t understand the consequences. When a reverse mortgage is written in only one spouse’s name, if that spouse dies, the survivor no longer owns the home.

Why would anyone do that? Some loan officers set up the loan for the oldest person so they can get more cash out. In the case of the Ogles, Jeanette didn’t understand that she was signing away the home she had and her husband had paid for and lived in together for over 30 years. And now the lender, Reverse Mortgage Solutions of Spring, Texas, was taking the property and throwing the 91-year old out on the street.

I posted and asked folks to write in a complaint to HUD (U.S. Dept. of Housing and Urban Development.) In addition, the AARP and others protested.

March 1st, Kenneth R. Harney, syndicated columnist, Nation’s Housing, reported that Reverse Mortgage Solutions has had a change of heart about taking away Mrs. Ogle’s home. They said they are now “committed to allow you to remain in your home” and will “take no action to displace you as long as the mortgage agreement… is not in default.” Meaning that as long as she pays the property taxes, all is good.

With a reverse mortgage, there is no payment — the company pays you — so the only way it can go into default is if the property taxes are not paid.

Jeanette Ogle said it was the best birthday present she could receive. She got the good news just as she was turning 92.

Mrs. Ogle said, “I’m on cloud nine. I’m staying put in my house. I don’t have to move. And even though I’m 92, I’ve got all my marbles–so everybody should know I plan to be around for a while.”

You go, Jeanette Ogle! We’re all cheering with and for you!

Innocent 91-yr Widow Muscled Out of Her Home

Evicted  A sweet little lady who’s managed to live to the age of 91 deserves respect. I don’t think there’s any argument there. So why is our government agency, HUD (U.S. Dept. of Housing and Urban Development) muscling Jeanette Ogle out of her home — when she owns it free-and-clear?

Great question, especially since on their “About” page, HUD claims one of their goals is to protect consumers. Just who do they think they’re protecting by tossing a nonagenarian out into the streets? This is one story that really makes my blood boil, and I’m glad Kenneth R. Harney exposed it in his syndicated column “Nation’s Housing.”

In 2007, Mr. and Mrs. Ogle refinanced their home into a reverse mortgage. A reverse mortgage is a program for senior citizens wherein they can collect cash from the equity of their home. The intent is to help old people who need extra income to live comfortably. Rather than die equity rich and live in poverty, they can receive a monthly check taken from their home equity. And why not? They put the money into the home, so why shouldn’t they be able to take some out? For seniors who need supplemental income, the program makes sense.

However, when the Ogles took their reverse mortgage, the Weasel who called himself a loan officer had only Mr. Ogle sign for the mortgage. At the time, Mrs. Ogle did not understand what was happening. She sat along with her husband and signed all the paperwork she was given to sign. She didn’t understand she was signing an acknowledgement that only her husband was on the loan. No doubt, her husband didn’t understand that either. Only the deceptive loan officer, underwriter, and possibly the signer and funder–all the people inside the business–understood.

In 2010, Mr. Ogle passed away, leaving his wife a widow. Now that the only person on the mortgage has deceased, the loan servicer, Reverse Mortgage Solutions of Spring, Texas, has initiated a foreclosure action. Once the 91-year old is booted out, the house ownership goes to the big government agency, HUD.  Like HUD needs another property, right?

HUD has “no comment.”  Cowards!

Handily, HUD has on their website an online form where people can send in a complaint about someone who violates housing discrimination laws. I’d love to see HUD flooded with protests on behalf of Mrs. Ogle. If enough people come to her defense, maybe the public can muscle HUD into backing off of their intention to strong-arm a little lady out of the home she and her husband paid for long ago.

Please feel free to pass this on to others in behalf of Mrs. Ogle via Twitter, Facebook, email, or any other way.