Liberty Hill, TX · Member since 2016 · 85 posts · 96 votes
9y
Hello Carl,
I worked for a Reverse Mortgage company here in Texas and in NY we used Stein, Wiener & Roth. They handled foreclosures and any kind of litigation for our properties there. They are also very familiar with the short sale process.
Hope they can help you or at least point you in the right direction.
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
You probably don't need an attorney. Reverse mortgage short sales are very simple. The lender really needs only an MLS listing, copy of contract, proof of ability to close, and an estimated settlement sheet. No borrower financial information is required. Whoever will do the closing can provide the estimated closing statement. Then the lender orders an appraisal. @Wayne Brooks is right, the offer will need to be 95% of appraised value to be approved. You can contest the appraisal successfully, though.
Investor · Orange County, CA · Member since 2009 · 230 posts · 138 votes
9y
There's really no short sale involved. If the home doesn't sell for enough to settle the entire balance, the FHA insurance fund (assuming it's an FHA HECM, which it likely is) makes up the shortage. The lender is already made whole by the program, but the home does need to at least sell for something close to the appraised value.
You probably don't need an attorney. Reverse mortgage short sales are very simple. The lender really needs only an MLS listing, copy of contract, proof of ability to close, and an estimated settlement sheet. No borrower financial information is required. Whoever will do the closing can provide the estimated closing statement. Then the lender orders an appraisal. @Wayne Brooks is right, the offer will need to be 95% of appraised value to be approved. You can contest the appraisal successfully, though.
Hey Denise, just one question need your help. In reverse mortgage short sale, if seller is died, seller's heirs have no motivation to do the deal with me because they do not get any money from it. Is there is any legal way to reward their heirs so I can move forward on the sale? I am thinking several options. 1. Direct short sale to heirs and then heirs immediately sell to me. However, in this case, heirs can cut me off once they have the property. I have no protection at all. 2. Would reverse mortgage servicer (bank) allow some kind of moving expenses/funeral expenses etc? I know many owners will glad to work with me if they can get a few thousand in this case.
Also, for a situation that owner simply refused to pay insurance/taxes and let it go foreclosure. Would bank gonna permit moving expenses if they have already moved out? They have little motivation and they usually in their senior age and they usually have a lawyer in the middle and causing problems.
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
5y
@Maurice George, you can pay the heirs for access to inspect the property and you can buy personal property. But, many times the children do not want their parents' name dragged through the mud of foreclosure lawsuits or foreclosure notices, and are also fearful that it might affect their inheritance in any other assets, such as cash or other real estate. TThey will usually work with you.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
5y
There is more flexible on reverse mortgage short sales than other deals. Buying personal property or paying an heir to cooperate may be acceptable as they are not a borrower on the loan. Obviously this should be disclosed to the servicer.
There is more flexible on reverse mortgage short sales than other deals. Buying personal property or paying an heir to cooperate may be acceptable as they are not a borrower on the loan. Obviously this should be disclosed to the servicer.
@Maurice George, you can pay the heirs for access to inspect the property and you can buy personal property. But, many times the children do not want their parents' name dragged through the mud of foreclosure lawsuits or foreclosure notices, and are also fearful that it might affect their inheritance in any other assets, such as cash or other real estate. TThey will usually work with you.
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
5y
You DO NOT need to disclose personal property purchases to the closing company. If you were offering an exorbitant amount as a subterfuge for paying more than the short sale price, that would be fraud. If you are buying personal property and access for those things, there is nothing fraudulent.