SFR prospect has reverse mortgage and is vacant

[Steve Gregory]

Heres the story on this one. Driving for dollars I find a vacant house and use assessors site to get owners name. Neighbor across street tells me the lady passed away about a year back. With my new people finder subscription I'm able to get her son's phone # and so I call him up and he tells me that she had a reverse mortgage on it and it should be up for auction in the future. I really didn't know what to say to that? The assessors site still shows her as the owner and C/O owners name as the owners mailing address. My Q's are these:       How does a reverse mortgage work?                                                                                      Is it possible with cooperation from the estate (son and whoever) to pay back what the owner received on the rev mortgage and get clear title on the property?                                       If so, how should I approach the son and what would he need to do?                                         All inputs would be much appreciated!

[Wayne Brooks]

A RM lender gives money to an owner, either all at once and/or monthly.  It is due upon the owner's death, among other events.  There likely is no equity which is why the heirs are doing nothing.  The lender will foreclose.  To do a short sale, the heirs wold have to cooperate, and the bank will accept no less than 95% of appraisal, since they areFHA insured.