Need help buying a short sale reverse mortgage from heirs

Lender · Member since 2023 · 2 posts · 1 vote

My next door neighbors passed away a few years ago. During probate their heirs found out that they had a reverse mortgage that is now more than the house is worth. They have agreed to sell the house to me, and I plan to move into it as my primary for a few years. They say that the mortgage is "with HUD" and need to do a short sale. I would love some advice from someone with experience in this area.

Ryan

1 Reply

33 views

Most Popular Reply

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Quote from @Ryan Anderson:

Quote from @Minna Reid:

I've been doing short sales for almost 20 years and have done many reverse mortgage shorts. They are a pretty standard process, but you shouldn't attempt this yourself as the buyer. Is there a listing agent involved? Usually that person handles the reverse short process, and is paid out of proceeds so there is no out of pocket cost to anyone. Is there an agent involved?

No, there are no agents involved yet. We are working directly with the heirs.

That is the problem - you should get experienced agent involved to assist with the transaction to get it done before the home gets foreclosed on.

7e investments53 Reviews

Website View Page

2 Reply

See this reply in the discussion

5 Replies

Jump to latestLatest

Sort by

Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Ryan Anderson:

My next door neighbors passed away a few years ago. During probate their heirs found out that they had a reverse mortgage that is now more than the house is worth. They have agreed to sell the house to me, and I plan to move into it as my primary for a few years. They say that the mortgage is "with HUD" and need to do a short sale. I would love some advice from someone with experience in this area.

Ryan
I speculate that this will be too much for you to pull off on your own. Find an agent that has some years under their belt and has done a couple of short sales and go from there.
1 Reply
Minna Reid
Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes
1y
I've been doing short sales for almost 20 years and have done many reverse mortgage shorts. They are a pretty standard process, but you shouldn't attempt this yourself as the buyer. Is there a listing agent involved? Usually that person handles the reverse short process, and is paid out of proceeds so there is no out of pocket cost to anyone. Is there an agent involved?
1 Reply
- Ryan Anderson
  OP
  Lender · Member since 2023 · 2 posts · 1 vote
  1y
  Quote from @Minna Reid:
  
  I've been doing short sales for almost 20 years and have done many reverse mortgage shorts. They are a pretty standard process, but you shouldn't attempt this yourself as the buyer. Is there a listing agent involved? Usually that person handles the reverse short process, and is paid out of proceeds so there is no out of pocket cost to anyone. Is there an agent involved?
  No, there are no agents involved yet. We are working directly with the heirs.
  0 Reply
- Chris SeveneyBusiness Member
  Moderator
  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  1y
  Quote from @Ryan Anderson:
  
  Quote from @Minna Reid:
  
  I've been doing short sales for almost 20 years and have done many reverse mortgage shorts. They are a pretty standard process, but you shouldn't attempt this yourself as the buyer. Is there a listing agent involved? Usually that person handles the reverse short process, and is paid out of proceeds so there is no out of pocket cost to anyone. Is there an agent involved?
  No, there are no agents involved yet. We are working directly with the heirs.
  
  That is the problem - you should get experienced agent involved to assist with the transaction to get it done before the home gets foreclosed on.
  7e investments53 Reviews
  Website View Page
  2 Reply
- Minna Reid
  Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes
  1y
  Quote from @Ryan Anderson:
  
  Quote from @Minna Reid:
  
  I've been doing short sales for almost 20 years and have done many reverse mortgage shorts. They are a pretty standard process, but you shouldn't attempt this yourself as the buyer. Is there a listing agent involved? Usually that person handles the reverse short process, and is paid out of proceeds so there is no out of pocket cost to anyone. Is there an agent involved?
  No, there are no agents involved yet. We are working directly with the heirs.
  
  There is no reason not to have one as it wont cost anything and you dont know what youre doing. The lender will also require you provide a listing agreement and listing history in any short sale.
  1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.