The Foreclosure Hustle: NY Post – Taking Out a Reverse Mortgage Ruined My Life
“A reverse mortgage is more trouble than help. If I had known it would be this bad, I would have sold my house.”
Taking Out a Reverse Mortgage Ruined My Life
When Frederick Feil took out a reverse mortgage on his Howard Beach home, he thought he was ensuring a comfortable future — not putting himself at risk of becoming homeless.
Feil, 67, who has a heart stent and undergoes dialysis treatments, is desperately fighting to prevent Finance of America Reverse from tossing him out of his home.
Feil took out a $353,000 reverse mortgage in December 2011, using all but a few thousand dollars to repay an earlier mortgage and cover hefty origination fees. Feil told The Post he fell behind on property taxes while in the hospital last year — and unexpectedly found himself in foreclosure last March when Finance of America Reverse called the entire balance, which has ballooned to $449,583.85 from interest and other charges, due.
Feil claims Finance of America’s servicer, Reverse Mortgage Solutions, gave him the runaround when he called about the default. The amount is not listed in the foreclosure complaint, which made it tough for him to catch up. Feil turned to lawyer Jennifer Levy of JASA Queens, which provides assistance for the elderly including legal services, she claims the case is riddled with errors.
Levy says Finance of America’s lawyer finally disclosed in May that the arrears totaled $15,375.