My brother inherited a property from my grandfather, but it has a 210k reverse mortgage lien against it. It has a value of 360K. My brother has expressed interest in keeping the property, but he has credit issues, so I said I would have no problem taking out a mortgage (this is a multi-unit property which I could use as a primary residence due to its proximity to NYC). This property is located in New Jersey, right across the Hudson River with a NYC view.
Here are my questions:
If I'm brought onto the title/deed, will the 90-day FHA seasoning rule still apply? I'm three years out from a Chapter 7 (co-signed for a friend and I was screwed), but my credit score is back up to a 720. The broker I spoke to said he can get us a 5 year FHA ARM, and I could refi in a year with my brother.
What are our options? Most houses in this area will not sell in 6 months. My friend is a real estate agent and he said most inventory in the area, depending on the condition of the property, takes 10-16 months to sell. At this point, my personal interests aside, it's a dice roll for my brother to sell. He has up to 12 months to sell the property with all of the HUD extensions and 3 months has already elapsed.
