Bradley Partner Jay Wright Quoted in DS News on Ruling for Reverse Mortgages for Non-Borrowing Spouses

Bradley attorney Jay Wright was quoted in DS News on a decision in a recent foreclosure case involving deceased borrowers and non-borrowing spouses. A Florida appeals court reversed an earlier ruling in OneWest Bank, FSB v. Palmero that found the surviving spouses of reverse mortgage borrowers also qualified as borrowers and thus would have the right to remain in the home after the death of the borrowing spouse.

“Palmero demonstrates that a lender may demonstrate that the surviving spouse is not a 'borrower' under the mortgage by introducing the other documents executed at the time the loan is originated—most significantly, the non-borrower spouse ownership interest certification, in which the non-borrowing spouse expressly recognized the fact that the borrower’s death would allow the lender to accelerate the loan and proceed to foreclosure,” Wright said.

The complete article, “Addressing Reverse Mortgages After the Death of a Borrower,” appeared in DS News on April 30, 2018.