I found my first motivated seller. Now what?!

[B Hunter Lott]

Hey All,

Here's the short backstory: My wife and I have been renting out our townhouse in Denton, Texas for the past 2 years and have been wanting to expand and grow our real estate investing experience. We ended up finding a family friend who said that she'd be willing to fund a fix and flip deal with us if we found the property and did all of the leg work. Exciting opportunity! So, we decided to try a concentrated wholesaling campaign of 1 handwritten letter. 

Here's how we found the property: 

1. Drive for $ in our zip code and save every distressed property on Zillow

2. Went on our (free) county tax assessor's website and researched each one of the properties looking for a) Back Taxes , b) Absentee Owner, c) 60+

3. Wrote a handwritten letter with a little info about my wife and I and why we were interested (included picture). 

In 3 days I received a phone call about our letter from the owner's friend/POA (owner has dementia)! The friend/POA said that the owner doesn't really need any money and doesn't have any kids that would benefit from the sale. Friend/POA said that it would really just be easier to let the property to go into foreclosure but she liked our letter and wanted to try and help us if possible.

Here's were we could use some experience and creativity: 

The property has a Reverse Mortgage! 

So, the property will absolutely go into foreclosure if we don't buy it. The Lender is Wells Fargo and the Reverse Mortgage is with HUD.

Question: Would Wells Fargo or HUD be willing to work with me on an affordable price or would they both prefer to take back the property through foreclosure?

Thanks Everyone,

Hunter

Also, if there is a better place to post this question let me know.

[Greg H.]

Unless the property is a deal at the current balance, there is no deal here. WF will not deal with you whatsoever as they have no incentive to do so as they can collect on their mortgage insurance with HUD. HUD reverse mortgages are subject to 24 CFR206.125 which basically states the property must be sold for 95% of appraised value

Above does not even address whether the POA has the power to sell the property