All Forum Posts by: William Farnsworth

I reached out to several appraisers and they said want $500 to reappraise. I've kind of given up on the reappraisal route as best case scenario I shave a few thousand off the price, and most likely case scenario I'm out $500.

I am leaning towards doing a double close now because I don't want to risk buying it without finding another buyer. Let's say I market the property for $590k and find a buyer. I purchase at $556k and immediately resell at $590k netting $34k minus fees. 

I wonder if HUD disapproves of double closes on reverse mortgage short sales.

Again, the reason I don't think I can just list for sale is because the payoff amount is like $890k and I don't make anything that way.

I reached out to Novad/HUD and have received a response regarding revaluation (posted below).

I am challenging the original appraisal on the property being rated a C4 when I think it should be a C5 (worse condition) and the reduced marketability of the property because it's below BFE in a floodplain. I'm not sure if an appraiser can affectively value that, but I'm going to call a few and see how far I get. 

If anyone has used an appraiser before that was able to consider elevation in a floodplain I'd be curious to talk to them. 

Ill update the thread based on my progress.

From HUD

https://entp.hud.gov/idapp/html/apprlook.cfm

 I almost called you after watching your Youtube video earlier today! Bigger Pockets has such an amazing community. I will update this thread based on my progress with the situation. Thanks everyone for all the feedback.

Thanks everyone for the feedback. It seems like my best bet is to have HUD do another appraisal. My main concern is an appraiser doesn't really get into the detail that a home inspector would. Maybe I need to get a home inspector to write up all the property defects and give that to the new appraiser

Thanks for the input. Sal, a reverse mortgage short sale does NOT require an arms length transaction so I am able to buy the property. Normal short sales do require arms length transaction.

My grandfather passed at the end of August with a reverse mortgage in excess of $850k on his home that was recently appraised at $585k. HUD has informed us that they'll accept a short sale for 95% ($557k). I had the top producing agent in the area inspect it and he told me I shouldn't pay over $475k and should try and negotiate a reduction. Normally I'd just tell my dad and aunts (the heirs) to just let the bank take it back, but the property is oceanfront, has some sentimental value, and would actually cashflow well as a vacation rental (assuming I could actually purchase it at $475k).

I think there is a lot of confusion regarding short sale negotiations with reverse mortgages because the negotiation is actually with HUD and not the bank. As I understand it, HUD provides the difference between the short sale price and the amount owed to the bank. Is negotiating with HUD much different from negotiating with a bank for a reduction?

Has anyone ever successfully done something like this?

Looking forward to seeing everyone Thurday. Had a great time at the last meetup!

Nothing closer to New Haven? Where do I find more about the Wallingford meetup? I went to one meetup in Wallingford before and there was definitely a sales pitch

I'm calculating;

$2585.50 = Income (before mortage + taxes)

-

$1180 = mortgage @ 5% fixed 

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$768 = taxes (approximately 4% * 75% of $315k assessed value. CT taxes are high) 

=

$637 Cash flow