All Forum Posts by: Shona Macmillan

Thank you guys.  Yes it makes sense to rather base the value on rentals.  When I do that the value of the house is $225k and the reverse mortgage principal owed by the family is $250K.  I really don't understand reverse mortgages.  How on earth did the bank value the property at that price 14 years ago?  In the deed records the original loan was $255k!!  I mean I know 2007 had all the lenders playing silly games but wow.  And isn't there a rule that the house cannot be worth less than the outstanding principal at time of death?  Max rental for each 2/2/1 side is $1250 in that area.  So it's a no go because there have been no repairs or upgrades done in almost a decade so repairs alone are probably a minimum of $40k

How do I comp a duplex in an area that has had no duplex sales in the last year?  Also, is there anything I can do if it has a reverse mortgage that would seem to be similar to the actual value of the duplex.