Purchasing a reverse mortgage home-question

[Dawn Rodgers]

I've been looking to invest in a second property. A house I've been watching just dropped from $123K to $105K today so I want to jump on it before someone else does.  My realtor was busy this afternoon so I placed a call to the listing agent.  She gave me some basic information but mentioned that the home was 'lender owned as the result of a reverse mortgage'.  She also mentioned that since it was a reverse mortgage, there would be no negotiations in price.  While I think the new price is decent, the property needs lots of work.   I can't imagine this is correct (the no negotiation statement).  Anyone have any experience with this? 

[Wayne Brooks]

Actually, no. With a RM the lender Must get 95% of the FHA appraisal they did, in order to get reimbursed by FHA. So, they do have a hard number they have to get.