Roseland Woman Fights Threat Of Eviction After Reverse Mortgage Leaves Her With Litany Of Problems
CHICAGO (CBS) -- Elaine Sharp has lived in her house for 47 years, but now she fears four generations will be kicked out because of a reverse mortgage come due.
The Morning Insiders on Thursday introduced to the South Side Chicagoan, who wonders if her saga is akin to the chronic problem of vacant homes in the city. CBS 2's Lauren Victory shared Sharp's fight against foreclosure.
Sharp said she laughs so she doesn't cry about losing her Roseland home.
"I grew up in here. My kids grew up in here. My grandkids grew up in here," Sharp said. "I had to go pray because I didn't know what to do."
The house belonged to Sharp's aunt, who took out a reverse mortgage with Celink and then died.
Contractually, Celink can foreclose on the home, unless Sharp and her lawyer, Matt Hulstein, figure out a way to cough up money for a short sale.
"Elaine is one of the most persistent people that I know," Hulstein said. "Heirs of reverse mortgage borrowers do have the option to pay off the reverse mortgage loan at 95 percent of the property's fair market value."
"That's when I started reaching out to the banks," Sharp said.
And in so doing, Sharp began to learn why there are vacant homes in her community. In order to get a loan to avoid foreclosure, she had to pay off liens, pay off water bills and pay for repairs.
After $11,000 in fixes, Chase Bank had another hoop for Sharp to jump through – inspection.
"We passed with flying colors," Sharp said. "Getting ready to close, then all stuff breaks loose."
Someone from Celink was supposed to provide Chase with a $57,000 agreement. But they sent a different amount because of a miscommunication.
"Customers currently owe $275K," Chase wrote in an email. "If the payoff amount is right, we are at a dead end."
It wasn't right, but the bank canceled the transaction anyway. That forced Sharp to reapply for a loan.
But all those repairs posed new problems.
"I exhausted all my credit cards," Sharp said. "My credit score went down."
She is still fighting for financing, and even has a name for it – based on her street address number.
"Saving 159 Legacy," Sharp said. "That's the name of the GoFundMe page."
Yes, Sharp is turning to the public now for a shot at ending a saga that she bets is not unique to her.
"This cycle is going to keep going on and on because nobody knows that they can keep their property if they fight," Sharp said. "I'm peaceful. I'm good. I'm good because I've done all I can do."
With Sharp's authorization, CBS 2 spoke with Celink's Chief Administrative Officer Karen Crawford by phone about the case. Crawford said Celink has tried worked with Sharp since 2018 with foreclosure proceedings extended multiple times. Crawford said the company would prefer not to foreclose on her home.
CBS 2 asked about the incorrect $275,000 payoff letter sent to Chase Bank by Celink that apparently derailed Sharp's loan transaction. Crawford said Celink reviewed their files in detail and did not find a servicing error.
Rather, Crawford said, the company responded to a payoff quote request from Chase, but it appears that request should've gone through a special department that handles short sales and it did not.
Sharp and her attorneys said they quickly provided Chase the correct Celink letter with the proper payoff amount, but that Chase still chose to cancel the transaction.
CBS 2 asked the bank for the reasoning behind that decision. Representatives would only say: "Ms. Sharp's case is complex. Our customer service team is continuing to gather details and hope to have a resolution soon."
Celink is subject to Federal Housing Authority requirements which includes financial counseling for borrowers before they sign the dotted line for a reverse mortgage.
Crawford's message to people wary of reverse mortgages is, "Contact your servicer and stay in close contact. We will work with you."
Sharp needs to hit a July 30 deadline or her current Celink payoff offer expires. The Federal Housing Administration has put a hold on foreclosures through Aug. 31.