Press Release / April 21, 2026
NEWPORT NEWS, VA – On March 23, 2026, Legal Aid Society of Eastern Virginia and Kelly Guzzo, PLC filed suit against the U.S. Department of Housing and Urban Development (HUD) and mortgage companies on behalf of Mrs. Janice Kendall-Mayo and the Estate of Cleveland Mayo, Sr. Mrs. Mayo is a 74-year old widow facing displacement from her home due to a reverse mortgage foreclosure.
Following the death of her husband in December 2024, Mrs. Mayo learned that Mr. Mayo had taken out a reverse mortgage on their home in 2011 to pay for medical expenses. A reverse mortgage allows homeowners, 62 years and older, to borrow money using their home as security for the loan. Unlike a traditional mortgage, no monthly payments are made and the owner may generally remain in the home until they pass away.
The complaint alleges the original lender falsely represented to Mr. Mayo that the federally insured reverse mortgage would allow his wife to stay in their home upon his death, even though Mrs. Mayo was a non-borrowing spouse. However, although federal law has long required HUD to only insure reverse mortgages that protect non-borrowing spouses from foreclosure, HUD ignored that requirement until 2014.
In 2025, Mrs. Mayo and the Estate’s executor, Ms. Kimberly Mayo, were informed that the reverse mortgage was due and payable because of Mr. Mayo’s death. Despite numerous requests for information and to postpone the foreclosure, the home was foreclosed.
Ms. Mayo and the Estate seek relief under the Administrative Procedure Act and challenge HUD’s ongoing failure to protect non-borrowing spouses of federally-insured reverse mortgages such as Mrs. Mayo from foreclosure upon their loved ones’ death. They also seek to rescind the foreclosure and to hold the original lender accountable for its alleged misrepresentation to Mr. Mayo.
If you believe you are facing a similar problem and think you may qualify for LASEV’s services, please apply for assistance by visiting us online at http://www.laseva.org, by calling our Eligibility Screening Line at (757) 827-5078, or by walk-in at one of our locations.
The Complaint can be found at this link [https://tinyurl.com/lasev-mayo-complaint] and on LASEV’s website.