Reverse Mortgages/Home Equity Conversion Mortgages (HECM)

[John Franczyk]

I know enough about reverse mortgages to be dangerous. Typically, an elderly homeowner effectively takes equity out of his or her house without having to make mortgage payments. The owner continues to own the home.

The reason I ask is because I located a house that's in a recently-filed estate. The heirs may not want the house and if conditions are right, I will make an offer to buy it from the estate. The house has an HECM, however, and I don't know how that affects the negotiations. The bank that created the HECM will obviously be involved int he deal. Does anyone what banks look for when they create these things?