OK...looking for some help from the BP geniuses.
I know you can do a Short Sale on a reverse. I just have no experience AT ALL with short sales or reverse mortgages, and this situation is a little sticky.
House has major roof damage...4-years of major roof damage in a very wet environment. Parts of the ceiling are falling down in one room, with wallpaper sloughing off the walls, signs of water damage in various other parts of the house. There's a really good chance there are major mold issues lurking behind the "wetwall" (nothing is dry in this house!) The problem has existed long enough that there is a decent chance ceiling joist & exterior framing have been compromised. (1960's build)
The value is really all in the land, but there is this reverse mortgage hanging out there, and the balance exceeds what I would pay for the land.
The good news is that the property is located in an enclave where major developer/investor tear down activity has been going on, with properties selling >$1mm, once developed. There is definite value here. Just not sure how to extract the value.
Help or suggestions?
RM's have to get 95% of an FHA appraisal in a short. The only shot of a good value is documenting the Major repairs with GC estimates to the appraiser/bank.
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