Maria Survivor Lawsuit Against Reverse Mortgage Lender Javascript must be enabled to use this site. Please enable Javascript in your browser and try again. × Search search POPULAR SEARCHES SUGGESTED LINKS Join AARP for just $9 per year when you sign up for a 5-year term. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Leaving AARP.org Website You are now leaving AARP.org and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.

Hurricane Survivor Fights to Save Her Home From Foreclosure

AARP Foundation takes on reverse mortgage lender

Nélida Castillo Cruz Photo: Barbara Jones/AARP Foundation Update (December 19, 2019): The case has been settled to both parties’ satisfaction and Mrs. Castillo will remain in her home. A 78-year-old blind woman who survived 2017's is fighting back in court against a reverse mortgage company that is attempting to foreclose on her home in Puerto Rico. Nélida Castillo Cruz of Ceiba recently filed a countersuit in a Puerto Rican court against an investment trust launched by Finance of America Reverse (FAR), a prominent reverse mortgage lender. AARP Foundation and Puerto Rico Legal Services (PRLS) are representing Castillo. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. In July 2011, Castillo took out a reverse mortgage loan of less than $40,000 from a Puerto Rican lender. The loan was later acquired by Finance of America Reverse. Reverse mortgages are a particular type of loan designed to enable homeowners age 62 and older to get cash for the equity they have in their home without having to move or make periodic payments on the loan. Instead, the balance of the reverse mortgage grows over time due to interest and must be paid off when the borrower dies, sells the home, or permanently moves. In December 2018, Wilmington Savings Fund Society filed a foreclosure action as trustee for the FAR trust against Castillo, saying that she had not submitted a document attesting that the home was her primary residence, something they asked her to do annually even though there is no such requirement in the loan agreement Castillo signed, according to her lawsuit. Castillo tried to submit the occupancy form four times in 2018, attempts that were burdensome for her due to her disability, according to the lawsuit. The lender rejected each of those forms, for a variety of reasons. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Flowers & Gifts 25% off sitewide and 30% off select items See more Flowers & Gifts offers > Responding to Castillo’s countersuit, Finance of America Reverse — which launched the investment trust she is suing — offered the following statement through a spokesperson: "We deeply apologize to Mrs. Castillo. This unfortunate situation was the result of a mistake by a third-party vendor. We are working immediately to rectify the situation and to ensure that Mrs. Castillo remains in her home." This article has been updated with a statement from Finance of America Reverse. More on politics-society AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS