AARP Sues HUD Over Reverse Mortgage Foreclosures

Palm Coast, FL – March 9, 2011 – Surviving spouses of three reverse mortgage borrowers filed a lawsuit Tuesday against the Department of Housing and Urban Development challenging the validity of the foreclosures they now face.

Attorneys for the American Association of Retired Persons represent the plaintiffs. They claim HUD rule changes for how and when the loans are to be paid off violates existing contracts between the borrowers and lenders, according to the suit filed in the U.S. District Court of Columbia. Plaintiffs seek an injunction against HUD from foreclosing on the spouses.

Complete Story >>>> HousingWire [March 8]