Florida retiree says he thought home was paid off before learning of hidden reverse mortgage. Then he was sued for $190K

A retired Florida man says he believed he was secure in his home until he learned of a reverse mortgage taken out years ago without his knowledge.Now, the Volusia County senior faces losing the house due to a federal foreclosure lawsuit.Must ReadThanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAPTurning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast“Am I going to survive this? I don't know” Bill Tavernier told WFTV Channel 9 in a story published Feb. 25. “My dog and I are going to be homeless. That’s what I’m staring at.”According to the broadcaster, Tavernier moved into his mother’s house nearly 20 years ago to help care for her. He was added to the deed in 2007. After she died in 2013, he continued living there believing he had full ownership of the property, as his mom had long paid off the original mortgage.But what he didn’t know, Channel 9 reports, was she had taken out a reverse mortgage in 2001, and last year he was hit with a lawsuit from the Department of Housing and Urban Development (HUD) seeking to collect nearly $190,000 in principal, interest and fees. Tavernier relies primarily on Social Security income, and doesn’t have the funds to pay the balance.His story illustrates how important it is for families to communicate about finances, and how misunderstandings — particularly when it comes to passing down assets — can result in serious financial pain.How did the lawsuit come about?Reverse mortgages allow older homeowners to borrow against their home equity, often without making monthly payments. With these loans, repayment is typically due when the borrower dies or sells the home. The most common reverse mortgage is the federally insured Home Equity Conversion Mortgage.In Tavernier’s case, his mother borrowed about $70,000, per Channel 9. Upon her death, the balance became due, even though he remained living in the home. But Tavernier says there was no correspondence from the borrower, and he claims his mom never mentioned the loan to him.“That generation … you didn’t discuss any of that with your kids,” he said.Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here’s the number that counts (and how to make it skyrocket)So, how could he have not received notice of the loan until 2025? Orlando real estate attorney Barry Miller told Channel 9 he suspects HUD may not have realized Tavernier’s mother had died until the house was put on the market last year. Now, it’s calling in the loan.“They’re just going against the property,” Miller told the broadcaster. “They’re not going to try to get a deficiency judgment or any money from him, because, of course, he’s not the borrower.”Bill says his efforts to fight the suit have been unsuccessful, and Channel 9 reports the home is due to be auctioned off sometime in March. The broadcaster says it reached out to HUD with questions about the communication issue between the parties, but had yet to hear anything.Avoiding a reverse mortgage surpriseWhile it’s generally a good idea to keep financial affairs private, if you know one day your decisions could have consequences for others, it’s best to keep them in the loop.Miller told Channel 9 if Tavernier had spent a couple of hundred dollars on a title search when he gained co-ownership of the home, it would have revealed the reverse mortgage. Tavernier also may have even been able to get a reverse mortgage of his own to pay off his mom’s loan.If you find yourself in a similar situation, here are some steps you can take to avoid problems.Check property records: As Miller suggested, checking county property records and performing a title search can reveal liens, mortgages or any other surprises attached to a home.Understand who's listed as a borrower: A loan is typically the responsibility of the person who signs the contract, but it’s a good idea to confirm what the paperwork says.Keep families informed: Before you take out a loan like a reverse mortgage, it may be a good idea to consult trusted family members or advisors beforehand to make sure everyone understands the terms and who is responsible depending on what happens.You May Also LikeRobert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do itNon-millionaires can now invest in this $1B private real estate fund for as little as $10. Here's how to get started in minutesWarren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.Article sourcesWe rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.WFTV Channel 9 (1)This article provides information only and should not be construed as advice. It is provided without warranty of any kind.