Resident fighting for money she believes she's owed from City of - KMOV.com

Resident fighting for money she believes she's owed from City of St. Louis

Posted: Updated:
(Credit: KMOV). (Credit: KMOV).
ST. LOUIS, Mo. (KMOV.com) -

A large company could soon be getting tens of thousands of your tax dollars that was intended to help people who are getting kicked out of their homes by the government.

Maria Mitchell is about to be homeless due to a reverse mortgage.

“We had children and grandchildren, of course, this was their home,” said Mitchell.

Mitchell grew up in her house in North City and then moved back in after her mom got sick several years ago.

“I don't want to leave, this is what my mom and dad worked hard for, for us,” Mitchell said.

Mitchell says she has no choice but to pack up and leave. Soon the city will bulldoze her entire neighborhood, making way for the National Geospatial-Intelligence Agency's new facility.

"I am going to be out, where's my next home, this is my home?” Mitchell said.

Mitchell's only possible bright spot: some money from the city through eminent domain. One hundred thousand dollars that has already been set aside in court. It is money she thought she would split with her siblings and then use to find someplace new to live.

But she has learned that a company wants to take every cent and then some.

“I think they are greedy and they were wrong,” Mitchell said. 

In 2009, Mitchell's parents took out a reverse mortgage. When they died, Reverse Mortgage Solutions became legally entitled to take the deed, as is often the arrangement with reverse mortgages.

But in April of 2015, the company extended an offer to Mitchell and her family. If they paid a little more than $12,000, they could keep the house.

Maria says she was scraping together the cash.  Then, the NGA was announced and she says Reverse Mortgage Solutions has reversed course, saying Maria owes them $102,000 instead.

“Fundamentally, I don't think that's fair,” said Attorney Ryann Carmody. 

Carmody represents the City of St. Louis, not Mitchell, but says the mess is not what the taxpayers intended.

“The city can't help her buy a home and so, she doesn’t have a place to go and so Reverse Mortgage gets everything, she's literally out on the street,” Carmody said.

Mitchell says she wants to warn others.

“Don't do it, please, do not do reverse mortgage,” Mitchell said.

She says she can only hope for a compromise, or karma.

“All I can say is God has the last say so, he has the last say so,” Mitchell said.  

News 4 called Reverse Mortgage Solutions but they said they can not comment on specific cases. The original offer did have an expiration date, which was in August of 2015.

If you're considering a reverse mortgage, ask questions. Always read the fine print and think very carefully about impact it could have on your family.  

Copyright 2016 KMOV (Meredith Corporation). All rights reserved.

Powered by Frankly