I and trying to buy my first property. 2 bedroom duplex in Philadelphia. I found the listing inspected the property and made an offer. The original asking price was 25k I doubled the offer to 50k because of the condition of the property and won. Shortly after winning the offer I found squatters in the property (Fun, fun, fun) This set me back half a month consulting with I guess the asset manager, who first told me the bank would not pay cash for keys for the squatters to leave, and later finding out that they would. OK, offer is back on the table. This time I decided to make some adjustments for my troubles. I am using a FHA 203k loan and ask that the seller pays 6% sense I doubled the asking price. I was informed that because the property is owned by Fannie Mae and it is a reverse mortgage foreclosed home, they will not pay any sellers assistance and she apologized because she did not see the original 3% sellers assist I asked for on the first signed agreement.
Something just sounds fishy to me. Any help?
Reverse mortgage foreclosures do not work the same way as regular foreclosures...
For a senior making a purchase, seller concessions are not allowed. They are applicable to forward mortgages only.
Not sure if the same rule applies when selling the house in a foreclosure... But, like I mentioned, the rules are different for reverse mortgage homes.
Are you going to be able to get a loan that small with a 203K?
Yes I believe so, the new offer is for 35k plus repairs of about 30k that puts me at about 65k. The minimum is 50k
Kevin, sorry this is coming in late- hopefully it’s still useful. I recently represented a buyer of a foreclosed reverse mortgage property that was also owned by Fannie Mae, it was very technical to say it nicely....
This article was the most helpful in preparing myself and my client for the process, and I knew a few things the selling agent wasn’t aware of because I had read it: https://www.linkedin.com/pulse/what-hud-guidelines-24-cfr-206125-timothy-bethel
I've sold a number of reverse mortgage REOs. They have never allowed Cash for Keys. I do beleive closing concession is allowed.
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