Reverse Mortgage

[Tami Brooks]

Hello!  Recently I made contact with a property owner I had been searching for quite some time now.  The property is vacant with almost 20k in delinquent taxes (in tax sell status).  She is in the hospital recovering from a surgery and does not live in the property.  She is interested in selling and gave me an amount she wished to make from the sell.  I set an appointment to me with her with my offer after I conducted my due diligence.  I found in 2008-2009 she did a reverse mortgage and the amount recorded is 200k which is way more than what the property is worth.  I now know that loan companies record 1 1/2 times the amount borrowed for these types of loans.

During my appointment with the owner I asked her about the loan details, payoff, etc. She stated that she had not received a statement in over a year and that to her recollection the last statement amount was for only 25k. I will not be able to meet with her again for another week in hope to see the loan documents and hopefully a recent loan statement. My concern is that the ARV for this home is 105k and from other posts I read many times these types of loans require to you to pay up to 95k of value. The house is vacant, needs repairs, and has delinquent taxes.

If there is anyone that has encountered this type of scenario please advise.