Migliaccio & Rathod LLP is investigating whether reverse mortgage borrowers were improperly assessed property tax advances, insurance charges, inspection fees, default-related expenses, or other servicing charges that they did not owe.
Reverse mortgages allow qualifying homeowners to access their home equity without making traditional monthly principal-and-interest payments. However, borrowers generally remain responsible for property taxes, homeowners insurance, and certain property maintenance and occupancy requirements.
Reverse mortgage servicers are responsible for maintaining account records and administering these obligations. When a servicer determines that a borrower has failed to pay property taxes or insurance, it may advance funds and assess charges to the borrower’s account.
Errors in these records can have serious consequences.
For example, a homeowner may have paid their property taxes on time, but the servicer’s records may incorrectly indicate that the taxes remain unpaid. The servicer could then assess an unnecessary advance, add charges to the account, or issue a default notice based on inaccurate information.
Migliaccio & Rathod is investigating whether reverse mortgage servicers have systematically imposed improper charges, failed to credit payments, or initiated collection and foreclosure activity based on incorrect account records.
Homeowners May Have Experienced:
- Being charged for property taxes that had already been paid;
- Receiving duplicate property tax or insurance advances;
- Being assessed insurance-related charges despite maintaining active coverage;
- Receiving unexplained property inspection or servicing fees;
- Being incorrectly classified as failing to occupy the property; or
- Receiving default or foreclosure notices based on disputed account charges.
Potential Claims May Include:
- Improper property tax or insurance advances;
- Unauthorized servicing or inspection fees;
- Incorrect default assessments;
- Breach of contract;
- Unfair or deceptive servicing practices; or
- Violations of applicable mortgage-servicing laws.
Signs You May Be Affected:
- You have or previously had a reverse mortgage;
- Your servicer charged you for taxes or insurance that you had already paid;
- You received duplicate or unexplained servicing charges;
- You received a default notice despite believing your obligations were current;
- Your servicer incorrectly classified your property as unoccupied; or
- You have account statements, tax records, insurance documents, or default notices documenting the issue.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.