Massachusetts Reverse Mortgage / HUD Property

[Ed Maione]

Hi all - 

A scenario has just come up where an elderly relative has moved out of a home that she had a reverse mortgage on, thus triggering the bank taking action to reclaim the house - she is 75. At first glance, it appears that the note is fairly close to what the market value will be - not very much if any equity left. That being said, do we just let the house go or are there other options available that would have more opportunity? I'm assuming that HUD doesn't care to own the home. Is there an opportunity to negotiate with HUD after they reclaim but before it is listed? Would appreciate any input from anyone who knows the process better than me!