Wednesday, January 22, 2014
JDSupra recently posted an article regarding the interplay of loan documents, deeds, and HUD regulations of an heir's right to purchase property. The court held that the plain language of the deed does not require notice and an opportunity to purchase the property at 95 percent of the appraised value to a surviving heir. The court went on to list three reasons to support this conclusion: (1) the deed does not include the death of the borrower as a triggering event, (2) the deed granted rights to the borrower, not surviving heirs, and (3) the HUD regulations were not incorporated into the deed. Furthermore, even if the HUD regulations were read to allow an heir such action, the applicable interpretation of HUD regulations at the time required full payment of the debt.
See Buckley Sandler LLP, Bank Obtains Dismissal of Surviving Heir’s Reverse Mortgage Class Action, JDSupra Business Advisor, Jan. 14, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.