Owner Financing home with Reverse Mortgage

[Brice Perry]

Hello, 

I wanted to see if anyone has had any experience purchasing a home that has a reverse mortgage. The home I am currently looking at is for sale by owner and was wondering if there was anyway to purchase with owner financing or if the reverse mortgage would cause that to be a problem. 

Thanks in advance

[Caroline Gerardo]

A disaster waiting to happen if you think owner can finance or do a wrap. A reverse taps the majority of the equity and grows. The reverse lender swoops in the minute they think the owner no longer occupies. Upon death of owner it must be sold in 12 months or they foreclose. You won't be able to hide the transaction or get hazard (fire) insurance. The owner is going to have to lie to the servicer...

Nothing creative available.