Reverse Mortgage

[Granison Johnson]

I have a prospect that is looking to sell but it is complicated. The property has a reverse mortgage on it. The home is part of an estate. The executor is has been given permission to sell it to settle the reverse mortgage. Has anyone run into this and how did you do it.

RM started in 2008

Paid till July 2013

RM Company wants $99k for the house.

Comps are coming out at $99k-$125

Executor has till July to sell or they will have to leave.

[Bill Gulley]

I believe the heirs have diffferent rights in paying off the RM.

The whole ploy is giving an annuity income for the property and hoping the owner dies, pay out less and profit. The amount set is a % of the property value and the annuity is based on actuarial data at the owner's age. The advances are considered a loan without expectation of repayment and they are entitled to the property.

I have never made nor taken a RM and when I inquired they would not show anything until an application was made and the home was considered, in other words, no docs disclosed unless you are qualified. So I have no experience here.

I suggest you get with the executor and see if the heirs have a different right at a lower value, perhaps see an attorney:)

[Granison Johnson]

The RM is was done to pay the house payment.

[Erin Lueders]

Bill -- the Reverse Mortgage is not a "ploy" nor is it an annuity. When applied properly, it is a very useful financial tool.

Granison, I messaged you with my email address, I can help you sort through this situation.

Also, RMs can be used to purchase a home -- which can be a tremendous advantage for those who'd prefer to put their cash in the bank rather than pay 100% cash. This is a fantastic financing tool for agents: increase sales, get sellers off the fence, upsell, and get financing for folks who might not qualify for traditional mortgages.