Reverse mortgage home

[Varinder Kumar]

My neighbor passed away two weeks ago and I just found out that he had a reverse mortgage on his home. I am wondering how I can go about purchasing his home? What the process would be and with the purchase price would be? Would I pay with the loan and balanced at? And who would I talk to to get more information in regards to, possibly making this an off market deal?? I feel like I might have an opportunity on my hands here just need to know how to go about it Please advise thank you!

[Wayne Brooks]

First you need for someone to have the legal power to sell it, which likely involves probate. Then you/they need to verify the loan balance, to see if there is any equity. Then, you see if you can come to an agreement. If it's upside down it will be a short sale, and will be required to be sold at 95% of a current FHA appraisal, which the lender will pay for. Not a lot of incentive for the heirs to do a short sale though.