Uninhabitable house with a reverse mortgage

[Stewart VanValkenburg]

I passed by a house today with particle board windows and doors. We've all seen them. It had a notice on the door saying the place was uninhabitable and they had until June of 2025 to get all their stuff out. So, vacant for at least 9 months, could have water damage from pipes freezing on top of everything else, but it was a pretty warm winter here. 

There's a reverse mortgage on the property. Start date Jan 2022 with a max loan amount of 442k. In good shape the house would go for 300k (it's tiny). Prices have kind of stalled in my area so in 2022 it would have still gone for around 300k. Not really sure how much of the 442k that they've used so far. If I call the mortgage company would they tell me?

Looking at it as a possible flip or wholesale deal. Would it be better to talk to the owner directly or the bank first? 

[Ken M.]

Quote from @Stewart VanValkenburg:

I passed by a house today with particle board windows and doors. We've all seen them. It had a notice on the door saying the place was uninhabitable and they had until June of 2025 to get all their stuff out. So, vacant for at least 9 months, could have water damage from pipes freezing on top of everything else, but it was a pretty warm winter here. 

There's a reverse mortgage on the property. Start date Jan 2022 with a max loan amount of 442k. In good shape the house would go for 300k (it's tiny). Prices have kind of stalled in my area so in 2022 it would have still gone for around 300k. Not really sure how much of the 442k that they've used so far. If I call the mortgage company would they tell me?

Looking at it as a possible flip or wholesale deal. Would it be better to talk to the owner directly or the bank first? 

A couple of things: once a reverse mortgage property is vacated, the "due on sale" clause probably kicks in. The "amount" is now due. Since you're not on the loan, it's unlikely the bank will talk to you. Depending on how the reverse mortgage was written up, "Equity and debt: As interest accrues, the loan balance increases, reducing home equity."

Nothing here, move along.