Reverse Mortgage- in Forclosure

[Erik Gladish]

Hi Creatives!

Just got off a call- the woman inherited a house that she is living in- her father owned it with a reverse mortgage and she is the successor but the company doesn't recognize her as the successor. It is now in forclosure because she can't make the property tax payments- of roughly $10k a year.  The home is valued around $1.4 M and the debt is $500k    She ideally wants to stay there until her last day- she is 60 so that may be in 20-30 years.    What options are there if any on this one.  

thinking she should get some roomates for income to make the payments and move from being in forclosure. 

If she can't make property tax payments then she wouldn't be the ideal tenant to let her stay.

If she can be convinced to sell- with $900k in equity she can get a decent house here in Ventura- with no mortgage but then there still will be taxes and insurance.

Any way to skin this cat?

Thanks,

Erik

[Joe Homs]

@Erik Gladish most reverse mortgage companies have it written in their contracts that once the borrower dies, the relatives have approximately 1 year to sell or refinance.  I would recommend that she sell the home quickly and take the money and rent.  That way she has enough to live on the rest of her life and not have to worry about taxes or repairs to the property.

Good Investing...