My relative's house has a reverse mortgage. I'm not listed as the executor or beneficiary in his will. Unfortunately, his health has declined recently. He said I can have the home if I payoff the reverse mortgage. What are my options? I was considering just doing a FAR/BAR real estate contract for the purchase of the home at the reverse mortgage payoff amount. I really do not want to assume the property prior to his passing, but I can if need be. My other thought was to have him put in his will that the house goes to me. Unfortunately, I don't think he is mobile enough to go to the lawyer's office. Also, I don't want to put him through that at this point.
How would you handle this situation?
It will be a lot cleaner for you to just purchase the home outright now. Also having been part of closing out one's estate I would say that you are doing your relative a big favor by allowing the money to go to their estate versus actual real estate because then the executor of their will or trust will have to deal with it. Additionally the executor is allowed to charge a reasonable fee to manage this transaction so if this is what your relatively really wants you are likely saving them, the executor, and the rest of the family time and money by getting one more major financial decision out of the way.
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