BEWARE HOMEOWNERS: REVERSE MORTGAGE PAYMENTS ARE SUBJECT TO EXECUTION
In an interesting case of first impression in New Jersey an appeals court has just held that payments to an elderly homeowner under a reverse mortgage where the homeowner caused a motor vehicle accident (and was uninsured at the time) are subject to execution and garnishment. In Cameron v. Ewing the court held that the senior’s payments could be levied to satisfy a $400,000 judgment entered against him. The court found that the reverse mortgage payments qualified as a “debt” under law which could be levied and it also rejected arguments that because the monies had to be repaid that they should not be subject to execution. Cameron highlights the need for all persons receiving reverse mortgage payments to consult with their financial and legal counselors to ensure that they are aware of this decision and its potential ramifications.
Ken Biedzynski is an attorney at Goldzweig, Green, Eiger, & Biedzynski who specializes in personal injury and landlord tenant law.