Reverse Mortgage Short Sale - Part 2

In January of 2009 I wrote a post asking:

What will happen, when a home owner has a Home Equity Conversion Mortgage (HECM) (aka Reverse Mortgage) and their home is no longer worth what they borrowed?  

There were comments from several people, including consumers who had experienced for themselves trying to work with the bank.  One person had spent way too much of his time and money trying to get the home sold and it was all wasted.  It seems not much has changed since that time.  

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I recently received this message:   

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Message details: 
From:  
Email:  
Subject: Reverse Mortgage (Sent via Activerain)

I'm emailing about your posting on trying to do a short sale on property with a reverse mortgage.
I'm trying to sell my fathers property in Pennsylvania and even have a buyer, but the road block isthe reverse mortgage company - they have presented a nightmare of paperwork - misinformation,and that's if you are lucky enough to reach them on the phone.

My father no longer lives in the property and is in a nursing home, but even if we turn over the property to the lender and let it default, we are still responsible for the upkeep, property taxes, etc until the mortgage company settles/sells the property.

I've been told I need HUD-1 Statement, several letters of intent to sell/buy, and a fax of check from the buyer before the mortgage company will send the offer off to the investors to consider a short sale vs. the loan going into default.  

(All the emphasis is mine)

My response, in part:

You may want to contact an attorney to advise you what your family is truly responsible for, get some solid legal advice as to what you actually have to do.  Your family may be responsible for less than you think. Find the original mortgage paperwork to take with you to the attorney, along with the correspondence you have since this started.    

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Based on comments on the original post and other correspondence I have received, these seem to be very difficult to navigate with no help or change in sight.  

My advice to any homeowner that is in a situation where the home is valued at less than what is owed to the bank(s) is this: speak to an attorney and a CPA before you decide what to do.

Depending on your state and your actual loan, there may be different consequences. What you think may be the best answer, may not be the case in your situation.  

Regarding a reverse mortgage, that seems to be a whole different animal.  My advice is the same, speak to an attorney for advice on handling the situation.  

As a Real Estate agent, I am unable to give legal or tax advice.  I do not have the expertise in those areas.   

I can't stress enough the importance of working with professionals when you are buying or selling a home.  

If there is a short sale, foreclosure or reverse mortgage involved, speaking to and attorney and/or CPA, may help you avoid further problems.