House was abandoned for 6 months and has a reverse mortgage $370K but FMV is around $220. For purpose of negotiating with lender:
1. Should I get reports/estimates from both Inspector and GC?
2. Should I leave it in as is condition, outgrown grass outside and a bit messy inside?
3. I have access to it, is it ok to sublease it while nego?
Wow...that's quite a spread in the numbers. Owe $370 with ARV of $220?? Estimates won't hurt but may or may not help...depends on the bank. I wouldn't do a thing to the property until you've closed on it. Too many things can go sideways and I'd hate to lose the money I've put into a property that ended up not closing.
Just my .02
Estimates are meaningless. With a reserve mortgage there will have to be an appraisal done and it cannot be sold any amount lower than 95% of the appraised value or the full amount due on the mortgage (whichever is less).
Are you the current owner?
is right about RM's and 95% of current FHA appraisal. No negotiations.
I think the $370K owed is because of the way reverse mortgages are calculated. I'm not the owner, it's in probate. I really want to let someone live there in the meantime, is that an option? will the appraiser be entering the house?
Probate short sale?
@Ron K. You don't own the house, so no you can't rent it. Heirs rarely bother with a RM short sale, since there is no equity, and no liability to the heirs (no possible deficiency).
I love Short Sales. I have done 4 and they are my favorite. I use a realtor who specialized in short sales because the banks pay the commissions no matter what. So you don't save money AND having a great short sale broker for me is the maker or breaker.
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