DeWitt Law Firm Defeats Reverse Mortgage Company

The DeWitt Law Firm successfully defeated a reverse mortgage company who was trying to foreclose upon a surviving spouse after her husband passed away.

Our client and her Husband entered into a reverse mortgage, which they were told would allow them to remain in their home for the rest of their lives. Just two years after they executed the reverse mortgage, our client’s Husband suddenly passed away and the reverse mortgage company filed foreclosure. The reverse mortgage company claimed that our client was not a borrower under the terms of the mortgage. Therefore, the Husband’s death alone, allowed the reverse mortgage company to foreclose on the property. Our client first hired another law firm that was unsuccessful in defending the foreclosure action. A Final Judgment of Foreclosure and a Writ of Possession were issued, which only gave our clients days to vacate the home.

Our client sought the assistance of another local attorney, who referred her to our office. We immediately filed a Motion to Set Aside the Final Judgment. Based upon the terms of the mortgage, we argued that our client was a borrower and could not be foreclosed upon until either her death or until she no longer used the home as her primary residence. The trial court agreed with our reasoning and entered an order setting aside the Final Judgment and quashing the Writ of Possession. The reverse mortgage company appealed to the Fifth District Court of Appeal. However, the Fifth District Court of Appeal dismissed the reverse mortgage company’s appeal allowing our client to remain in her home for the rest of her life without the fear of the reverse mortgage company foreclosing.

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