Buying Empty HECM Homes

[David Dachtera]

A fellow in my investing group IM'd me on Facebook about a house he found which has been empty for a few years. Here's what I found out from the County records and other sources...

The home's financing was converted to an HECM ("Home Equity Conversion Mortgage", a.k.a. "reverse mortgage") back in Q2 CY2008.

The former owner died a widower in Q3 CY2012. The property is in the deceased's name only.

The HECM was assigned to BoA in Q2 CY2014.

The property taxes are current up to now (1st half, 2015 taxes paid in Q2 CY2016).

Per the neighbors, an estate sale was held back in 2014. The unsold items remain in the house.

So, it looks like the owner's family has pretty much abandoned any attempt to further liquidate the estate (probably figured there'd be no value due to the HECM).

Does anyone know who one might contact at the lender (BoA) to see about perhaps buying the home? Without the HECM and deceased owner, it would be considered a pre-foreclosure (no Lis Pendens found in the County Records). Not sure how the HECM changes the situation.

David J Dachtera

[Wayne Brooks]

The servicer for the HECM must sell it for at least 95% of a current FHA appraisal whether as a short sale, or later as a REO. a short sale would also require the cooperation of the heirs. I consider these non-deals.