Rental Property Investor · Greenlawn, NY · Member since 2018 · 17 posts · 5 votes
Does anyone have experience with reverse mortgage? Trying to buy a deceased neighbors home (who has a reverse mortgage on it and actually owned more on it than it’s current estimated value). Will the bank negotiate with me or the executor of the home? (The daughter). Any words of advice/experience?
@Keren Adaki No realtor needed. Get authorization to speak with the loan servicer, explain that you are helping family sell the house but the property is worth less than the payoff, they will send an appraiser and once appraisal comes back they will accept 95% of the appraised value.
You will have to go through their short sale process which is a pain in the you know what but thats generally how it works. It works in your favor if the house is in bad shape.
If the daughter would like to short sale the home, she should contact a real estate agent that specializes in short sales. The agent will contact the lender and initiate a short review, which will include ordering an appraisal. Once the appraisal comes in, the bank will accept 95% of the appraised value as the sale price.
The agent is paid up to a 6% commission of the sales price by the bank, so it's a free service for the seller.
@Keren Adaki No realtor needed. Get authorization to speak with the loan servicer, explain that you are helping family sell the house but the property is worth less than the payoff, they will send an appraiser and once appraisal comes back they will accept 95% of the appraised value.
You will have to go through their short sale process which is a pain in the you know what but thats generally how it works. It works in your favor if the house is in bad shape.
@Keren Adaki No realtor needed. Get authorization to speak with the loan servicer, explain that you are helping family sell the house but the property is worth less than the payoff, they will send an appraiser and once appraisal comes back they will accept 95% of the appraised value.
You will have to go through their short sale process which is a pain in the you know what but thats generally how it works. It works in your favor if the house is in bad shape.
Lydia, you are right. You do not need an agent for HECM short sale. However, you will pay for same price regardless. Why not hire an agent to do the work for you?