All Forum Posts by: Juan Chavez

Did you end up selling to Opendoor? @Christopher Davishr

@Bill Exeter great information! My concern was more with the loan and didn't consider the tax aspect. I want to get a loan for what I have into it. The previous appraisal puts us 75% LTV. The LLC is a partnership and the new loan will be with only one of the members so I'm not sure a distribution is okay?

My concern is when we get the new loan with a bank and make this house our primary residence, is it a new purchase or a cash out refinance?

I'm in the same situation. I have a short term commercial loan and own the house under an llc. I've talked to several banks and have been told I have to do a refi since I own the llc. I put a big down payment and want to get that cash out but that makes the loan have a higher interest rate. @todd plummer did you do a purchase or a refi?

Did you ever go through with this transaction? @Ibrahim Hughes

@Ron S.

Thanks Ron, I am going through the necessary steps. Currently I am working with the sellers attorney. I will definitely update as I go along.

I hear your thoughts and I'm sure you can respect, what is most important is validating the short sale rules from Freddie Mac, Fannie Mae, HUD (FHA) (HMCA), or VA. Each have different rules. I was hoping someone maybe has case law or federal statue and a reputable website with the answer they post. That is all..

@Ron S.

Hey Ron thanks for participating in this blog. Do you by chance have the rules or law that supports your answer? Again it is a HECM mortgage.

Having a real estate license will help you be a better investor.

@Wayne Brooks

Thanks Wayne for participating in this conversation. I will definitely update you on what I find out. The property is held in a trust and I may try to become a trustee and then sell it to myself for the 95% appraisal. I hope I don't have to list it or it has to be an arms length transaction as in most short sales guidelines. The attorney I retained says those requirements don't apply to HECM.

@John Farady

Thanks John, you seem like a reasonable person and I appreciate the candor. I hope to continue it. And I will definitely update this blog upon attempting to make this happen.

I am not wife nor heir. The property is held is held in a trust and the trustee who did the reverse mortgage died. Her son is now the trustee. I don't read you have to be heir or wife. I read permissable party or other party with legal right to dispose of the property. See 206.125(4)(c) below. Thanks for bringing up trust because that may be a better way to convey title, or essentially not.

Sale by borrower or other permissible party. Where the HECM is not due and payable, the borrower or an authorized representative of the borrower may sell the property for at least the lesser of the outstanding loan balance or the appraised value. Where the HECM is due and payable at the time the contract for sale is executed, the borrower or other party with legal right to dispose of the property may sell the property in accordance with the amount established by § 206.125(a)(2)(ii). The mortgagee shall satisfy the mortgage of record (and the Commissioner will satisfy any second mortgage required by the Commissioner under § 206.27(d) of record) in order to facilitate the sale, provided that there are no junior liens (except the mortgage to secure payments by the Commissioner if required under § 206.27(d)) and all the net proceeds from the sale are paid to the mortgagee

@Wayne Brooks

The guidelines reference party with legal right to dispose of the property and not wife or heir. Where do you see you can only be wife or heir?

"Where the HECM is due and payable at the time the contract for sale is executed, the borrower or other party with legal right to dispose of the property may sell the property in accordance with the amount established by § 206.125(a)(2)(ii). The mortgagee shall satisfy the mortgage of record"

Whole section

§ 206.125(4)(c)

Sale by borrower or other permissible party. Where the HECM is not due and payable, the borrower or an authorized representative of the borrower may sell the property for at least the lesser of the outstanding loan balance or the appraised value. Where the HECM is due and payable at the time the contract for sale is executed, the borrower or other party with legal right to dispose of the property may sell the property in accordance with the amount established by § 206.125(a)(2)(ii). The mortgagee shall satisfy the mortgage of record (and the Commissioner will satisfy any second mortgage required by the Commissioner under § 206.27(d) of record) in order to facilitate the sale, provided that there are no junior liens (except the mortgage to secure payments by the Commissioner if required under § 206.27(d)) and all the net proceeds from the sale are paid to the mortgagee.