Inherited a property with a reverse mortgage in Puerto Rico. What are my options to refinance?

[Alberto Leon]

Hi All,

New to the forum. I just Inherited a property with a reverse mortgage in Puerto Rico. I do not want to sell the property and but do not currently have the liquid funds to pay off the balance of the mortgage. My only option is to refinance. Does anyone have any experience in dealing with this type of transaction? Any advise on keeping the bank from foreclosing on the property would be helpful .

[Rick H.]

I've had this scenarios brought to me well over a hundred times (although not in Puerto Rico). 

As you know, an RM, once triggered by the incurable breach, requires a balloon payment of all unpaid principal, interests, advances, costs, etc. 

Since most all loans are held by institutional investors, it's unlikely that they'll warm up to creating solutions between lender/servicer and heirs/beneficiaries/distributees. 

If there's lots of equity, meaning 50% LTV or thereabouts, as new owner, you could probably find a loan or investor to pay off the existing loan and replace with what ever the market supports. If less equity, I'd be in salvage mode to sell, quickly, and extract what you can, while you can.