Like thousands of local homeowners in their golden years, Rosemary Chandler took out a reverse mortgage in 2005 to help pay her expenses and remain in the Elk Grove home that’s been in her family since the 1940s.
The decision worked out fine during her lifetime. But since her death in January 2010, it has created a legal mess for her son, who now faces foreclosure and eviction from the family home.
This month, Robert Chandler, 66, filed a class-action lawsuit against Wells Fargo Bank in U.S. District Court in San Francisco, alleging that the San Francisco banking giant routinely violated federal rules on reverse mortgages, forcing the homes of deceased borrowers to go into foreclosure instead of allowing family members to purchase them from the bank.
via Reverse mortgage turns sour for heir – San Jose Mercury News.