Accounts of abandoned HECM properties highlight significant servicing problems for assigned loans
“My mother passed 3 years ago and she had a reversed mortgage on her home that funds ran out several years ago. All documents were sent to the servicing company (death certificate, copy of the trust) in 2016. Since then the loan has changed servicing Co. two different times and it still has not gone into foreclosure…”
This is just one example of the servicing issues that are a continued drain on FHA’s insurance fund and lead to neighborhood blight.