Seller has a reverse mortgage, how can I help?

[Kevin Greene]

Just came back from checking out a property. It is a FSBO I found driving for dollars. The property is in a desirable neighborhood with older houses built in the early 1900s. This one is in need of a complete renovation but I think it would be a great flip. The seller inherited the property from his mother who passed away. She had done a reverse mortgage several years ago. Seller has until the end of the year before they foreclose. He wants 135k to satisfy the 120k mortgage and get 15k to go towards a new house for his family. The problem is that 135k is near the ARV of the home. It needs a complete renovation. I would like to get the property at a deep discount and help the seller as well, but I don't see how I could get it as a discount and get him his 15k. Is a mutually beneficial outcome even possible? I don't think he is going to be able to get enough to pay the mortgage and get more on top, unless he finds a true sucker. It seems like a short sale is the only option, but I'm not sure how this works with a reverse mortgage.

[Brett Goldsmith]

Reverse mortgage short sales are possible. Strict HUD guidelines. Generally want 95% of their appraisal.