Dying man faces eviction over inherited reverse mortgage

A Balhannah man dying of cancer faces eviction from his inherited unit over a reverse mortgage he originally thought had been paid off.

Tom Sullivan, 78 and dying of cancer, feared he and his dog Archie would end up sleeping in his car after being given 10 days to vacate his home — until intervention by The Advertiser saw a lender backflip.

Mr Sullivan inherited the Balhannah unit from his mother after she died in 2012 and after probate was under the impression all debts had been cleared.

However, a $50,000 reverse mortgage with HomeStart Finance was still outstanding and Mr Sullivan claims correspondence was sent to the wrong address resulting in him not learning about it until five years ago.

He said he began paying $350 a fortnight but after falling seriously ill with throat cancer 18 months ago, Mr Sullivan sought a “hiatus” then stopped paying as he went through treatment.

He says the debt has grown to $120,000.

Tom Sullivan and his dog Archie. Picture: Naomi Jellicoe

“A bailiff came around and said I have 10 days to get out,” Mr Sullivan said. “I have got until 10am on Monday to vacate. I’ve got nowhere to go, so me and my dog may end up living in the car. Who can find a new place to live in a matter of days?

“I’m on a lot of medication and have months to live. I think it is pretty despicable when they are going to get the unit in a matter of months anyway.

“It’s a nightmare. I have offered to resume payments, but have heard nothing.”

Tom Sullivan is worried he may have to live in his car with his dog Archie. Picture: Naomi Jellicoe

Mr Sullivan, who worked in the Department for Energy, says the unit is valued at $450,000 to $520,000.

He confirmed there had been previous warnings about defaulting on payments.

After inquiries by The Advertiser, HomeStart chief executive Andrew Mills said the lender has “paused planned proceedings to take possession of Mr Sullivan’s late mother’s home on the understanding he continues to engage with us to find an appropriate solution.”

“We have been working with Mr Sullivan, who is the executor of his mother’s estate, on a resolution since learning of his mother’s death in 2018. This followed Mrs Sullivan’s passing in 2012,” Mr Mills said.

“We recognise the difficulty of Mr Sullivan’s circumstances and have made substantial efforts to provide ongoing assistance to him and his advisors for some time. We now look forward to full and constructive engagement to find an appropriate resolution.”