Help me help my lead

[Deuris Liquey]

Good morning everyone. I am a Wholesaler and I came across this lead, he's on a Pre-Foreclosure list, his house is under water, it's worth about $700k but he owes about $975k because he took a Reverse Mortgage on the property, I know that with the Reverse Mortgage, if the balance is more than what the property is worth, he doesn't have to pay the outstanding balance. My question is, how can I help him in this situation? I don't think wholesaling the property will help him because he won't get retail & he's still gonna owe money, & we can't Sub2 the property because of the Reverse Mortgage. What can I do in this situation?

[Minna Reid]

A short sale would be an option. Reverse mortgage shorts are pretty straightforward and assuming he qualifies, he can sell the property at 95% of the current appraised value as Kyle mentioned. 

ISN took over a lot of HUD servicing from Novad, but the owner is getting letters from some entity demanding payment. Get a third party authorization from the seller for that entity and contact them.

TBH though, I don't see what place there is for a wholesaler in this as the contract wont be assignable, and it will be at market value.  You will also have to prove your ability to purchase the property yourself, so I would not go under contract with this unless you yourself are able to purchase it. If you don't want to do that I would refer this to another investor or maybe even an agent so he does get the help he needs.