ONANCOCK, VA (September 25, 2025) The Legal Aid Society of Eastern Virginia is representing Mrs. Evelyn Sample, a 72-year-old widow, in a federal lawsuit against the United States Department of Housing and Urban Development (HUD)and two mortgage companies. Shortly after the tragic loss of her husband, Mrs. Sample was shocked to learn that the owner of the reverse mortgage her husband took out several years ago claimed it was due as a result of her husband’s death. As a result, Mrs. Sample was faced not only with the loss of her husband, but also the loss of the place she and her husband called home for decades.
As the lawsuit alleges, this series of unfortunate events should not have happened. By statute, Congress directed HUD to insure reverse mortgages. Reverse mortgages allow elderly homeowners to relinquish equity in their home to a mortgage company, who in exchange provides the homeowners with a lump sum or regular payments. It can be a vital tool for elderly homeowners like Mr. Sample who faced unexpected medical expenses. However, although the statute advised HUD to only insure reverse mortgages that became due upon the death of the borrower and non-borrower’s spouse, for years HUD insured mortgages, such as the Samples, that did not protect the non-borrowing spouse. What is more, Mrs. Sample alleges they were led to believe that the mortgage would not become due upon her husband’s death. While HUD has since amended its regulations following several lawsuits, this lawsuit alleges that HUD’s remedial actions still fail to protect non-borrowing spouses like Mrs. Sample, and thus still fail to comply with the law.
LASEV is committed to holding HUD accountable, ensuring Mrs. Sample’s right to remain in her family home.
If you believe you are facing a similar problem and think you may qualify for LASEV’s services, please apply for assistance, by calling our Eligibility Screening Line at (757) 827-5078, by visiting us online at www.laseva.org, or by walk-in at one of our locations.