Parkville, MD · Member since 2017 · 22 posts · 19 votes
Hello. Can you please advise me on how to purchase an out of state home where the owner has a reverse mortgage on it? I live in Maryland and the elderly owner, and the property are in California. The owner owns the home free and clear, and then took out a reverse loan-HECM line of credit about two years ago. The owner just showed me a loan statement that is 5 months old and doesn't know what they currently owe and doesn't know the payoff amount. My desire would be to tender a contract to purchase the property, pay off their loan while ensuring the owner receives fair compensation and I receive the house. The owner is okay with me contacting the mortgage company and getting authorized to get their loan information so that I can make the purchase happen. Any advice on how I start the process?
Buffalo, NY · Member since 2018 · 790 posts · 530 votes
1y
If you have a statement from a few months ago that shows interest rates and payments you could back into an estimate of what they owe - or just contact the mortgage company.
Before doing that though, the first step is to really drill down on a number makes sense for you to buy the house. While it would be great to make sure that the seller can pay off the loan and walk away with enough to live off of, you can't just be willing to overpay for the property.