Investor · Granbury, TX · Member since 2014 · 13 posts · 4 votes
Looking at a reverse mortgage foreclosure that will sell on the courthouse steps. The owner is deceased. Loan said it was for 181k. And originated in 2011.
Given that the bank has not given out the full value of the loan yet given the 7 year time frame. Is the bank bid Normally for the full value of the loan (181k) or is it closer to what they have spent on the reverse mortgage?
I am assuming that it would go for 181k since this would be how the bank makes their money on reverse mortgage. Is this correct?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Unlikely it will sell at the auction, unless someone bids the full amount owed including of course all accumulated interest. The lender is required to sell the property for at least 95% of a current fha appraisal, if the property is upside down, in order to be reimbursed by fha, the insurer.
Investor · Granbury, TX · Member since 2014 · 13 posts · 4 votes
8y
@Wayne Brooks
Thanks for the help. I thought that would be the case that it would revert to the beneficiary
I know it is not worth 180k
I thInk Full retail is probably 150-160k
That makes my decision on whether to go to this auction to watch. It’s the only one on the docket for this county at the next auction