Estate of Jones v. Live Well Fin., Inc.

Man, once a “legit baller” in the NBA, takes out reverse mortgage on his home, dies within a year. His widow (who lives in the home with their minor daughter) does not repay the loan; the lender moves to foreclose. Widow: The reverse mortgage was HUD insured, and HUD is prohibited from insuring loans that allow for surviving spouses to be evicted. Eleventh Circuit (providing link to the man’s highlight reel in the footnotes): Yes, but the contract in question allows exactly that; HUD probably shouldn’t have insured the loan, but that’s not the lender’s fault.

Tags: 2018, Eleventh Circuit, HUD, NBA, Reverse Mortgage

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