Foreclosing on reverse mortgage?

[Bob Malecki]

We generally buy borrower occupied NPLs and attempt a workout with the borrower. I have an opportunity to buy some HECM loans on vacant properties. These are reverse mortgages where the borrower has passed away. 

Does anyone have any thoughts on the viability for foreclosing on this type of loan and what the liabilities/pitfalls are? 

Thanks

Bob

[Wayne Brooks]

RM’s have the “must sell for 95% of a current fha appraisal” due to the fact the fha insures the vast majority of them, and that is their requirement for them to pay out on the insurance.

@Bob Malecki I'm guessing these aren't FHA insured, or they wouldn't be selling them? I wouldn't know of extra reg.s, just mtg contract terms.