Reverse Mortgaged Neighbor Died

4 Replies

So, an elderly neighbor died in February. I want to buy the property. She was on a reverse mortgage that has switched hands several times. I tried calling the county to see who holds the loan with no luck. I talked to a real estate agent who informed me that there's not much we can do with it until the estate is settled or the bank forecloses on it.

The loan was originally through a Local State Bank, then

Financial Freedom, then

One Westbank, then Indymac.......then:

“IndyMac, a contraction of Independent National Mortgage Corporation, was an American bank based in California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation.”

I can’t help but wonder if the bank/agency holding the loan even knows she passed! The house is now full of trash and has been vandalized. I’d like to get it ASAP. Any suggestions on any ways to jump start this transaction? THANKS

The lender can’t/won’t help you since they don’t own it.  The agent is correct, until someone goes through probate, no one has the legal ability to sell to you.

Know this....if the property is under water, a short sale can only occur for a minimum of 95% of a current fha appraisal.  There is no incentive for an heir to go through the short sale process.  Does the agent know the outstanding balance, which can only be obtained by the heirs?

@Robert Glatz That depends on your local court system.....all records are public, at the worst you’d have go down and actually look at the probate file, if there is one.  If there is equity, the heirs will likely go through probate so they can sell it, not buy it.