Interest-Only Loan to Refi Out of Reverse Mortgage?
Hello,
I have a client from my day job who inherited a property in Inglewood, Ca. It’s stone’s throw from where the new SoFi Stadium is being built. Her deceased father had a reverse mortgage on the property and the company is requiring payment in full by July 1st. Reverse mortgage payoff balance is approximately $300k and home is worth approximately $695k.
Client is considering selling this property to satisfy the reverse mortgage. She would like to keep it but would have difficulty securing financing because one of her income properties is in forbearance.
My first thought is the client should find a hard money or private lender (I’m not entirely sure of the difference) that will give her a 12-month interest only loan to pay off the reverse mortgage. Then refinance out of the hard money or private lender loan once she’s out of forbearance on the other property.
Is this a sound strategy? Should she be doing something different?
Thank you for taking the time to read my post!