Reverse Mortgage Deal Options?

[Allen Maris]

Hi, I'm hoping someone can offer up some thoughts on this as I've run out of ideas.

House has a reverse, balance is about 270k, value is about 230k. The heir can't qualify to buy, but really wants to stay in the house. I'd like to help them figure it out, even if that means no money for me.  I'm assuming even if they did a 95% short sale on it, there's no way to rent it out profitably. Market rents are in the 1600-1700 range.

I appreciate any thoughts!

[Account Closed]

Originally posted by @Allen Maris:

Thanks, @K. marie P. and @Diego Loya. Guess my conclusion is unfortunately the same. It's not held in trust and the heirs are dealing with the time constraints. The mother passed away 5 months ago. Seems the only option they have is to short sell it. Even at 200k if I were to finance it myself, rents won't allow me a decent return on my money.

"They" can't short sell it without opening a probate and someone being appointed admin or exec.  Which opens the can of worms of other debt.  Banks have to foreclose on property like this in order to gain title re-sell it.  Most heirs don't have $5K+ sitting around to spend on something they have to sell and will receive no proceeds.  

Has the lender filed the NOD? You can let the heir know that the foreclosure sale is 4 months out from the NOD. This should give them time to make plans for other housing and storage or sale of the personal property.