Elderly Widow Says Imminent Eviction Violates HUD Policy

ATLANTA (CN) – An 85-year-old whose late husband took out a reverse mortgage on their home claims in a federal complaint that the U.S. Department of Housing and Urban Development is trying to evict her.

Filed Friday by attorneys by the Atlanta Legal Aid Society, the complaint notes that Peggy Spaulding and her husband of 57 years bought their home in Stone Mountain, Georgia, together in 1980, but she was not a party to the reverse-mortgage loan agreement that Henry took out on March 30, 2009.

“As part of the loan transaction, Mr. Spaulding, UFG [Urban Financial Group], and HUD entered into a Home Equity Conversion Loan Agreement and contract for HECM insurance,” the complaint states.

Spaulding noted that she signed as a borrower on the first security deed to UFG and the second security deed to HUD, but “because the loan was originated prior to August 4, 2014, HUD’s standard form security deed at that time failed to provide any deferral period or other protection against foreclosure for Mrs. Spaulding.”

https://www.courthousenews.com/elderly-widow-says-imminent-eviction-violates-hud-policy/