Wholesaling with reverse mortgage

[Carl Bo Smith]

Looking for some guidance and advice. (Long Post)

I have a homeowner that called me needing to get out of her home ASAP. She has a very ill husband and needs to finish her move to Florida because of his health. She has a 4/2 that is in one of the best zip codes of Jackson, MS and is/was lake front, but that still means it may never appreciate. The home allegedly appraised for $170k in January. Since then the person who owns the land on the back side of the lake opened the levee and drained it. Now the lake front property is dirt front property and is worth significantly less. It’s currently listed for $130k and hasn’t sold in 2 months. The listing agent, whom I do not know, suggested to the homeowner to call me.

Problem is, there’s a reverse mortgage with a $106k balance and the home is in excellent condition with a newly updated kitchen. I see no way to force much appreciation through rehab/upgrades. The home should rent for around $1,200/mo. Is there a way to subject to a reverse mortgage where this may work as a rental, or how else could I approach this?