Property with Lien and Reverse Mortgage should I Buy?
I am fairly new to real estate investing and need some advice regarding purchasing a property with a lien and reverse mortgage. This property is located in Dallas Texas and its a good deal.
Background: The property owner who is the executive of the will put the property up for sale by owner after both of his parent past away. The owner stated he did not need to go to probate court because all of the family member on the will agree to the sale of the property and divide the profit equally after the sale. After negotiating the selling price i come to find out that the property has a reverse mortgage from AAG of 65,000 when the father was alive, and now there is also a lien fromHUD/FHA for 150,000. The owner was unaware of the lien and after speaking with AAG rep. the owner stated that once the mortgage is pay off the lien will be remove from the property.
Questions?
1. Is this normal to have a Lien on a property when there was a reverse mortgage on the home?
2. Will a written pay off statement from AAG be enough to protect me from the 156,000 lien?
3. If i got through a title company will they give me the protection against this lien if the deal does close with the seller?
4. Since the son is the executor of the will does he need to go to court to get a letter of testamentary to close this deal? All of his sibling on the will agree to the sale of the property.
Thanks again for the help.