Reverse Mortgage, Single Family

2 Replies

Greetings from New Jersey, A seller I contacted through my probate marketing campaign has recently got back to me and revealed he has a reverse mortgage on his property and wishes to get rid of it and claims he wants “nothing” to do with it. The property’s ARV is between 133-141k single family home with me setting out to view the property on Monday for a repair estimate. He claims he needs to get the papers to find out how much the reverse mortgage is so that leaves me with my question. I’m not familiar with reverse mortgages so should I treat this like a lien or loan and also would you move forward with this property? I don’t want to do a undoable deal but I will pursue no matter how little the profit if there is to made depending on the reverse mortgage
it is a mortgage, but in reverse.. the interest is added to the loan each month.. so instead of his mortgage balance going down, it increases every year.. it will all depend on what the original number the back put on the house at the time of the loan, and how long he's been in this program.

The information you need is readily available on the seller's monthly mortgage statement. Just tell him to look at the last statement, or show it to you, so you can see what the current balance is. That'll give you an idea if it's worth pursuing. The balance could be more than the ARV.

I just looked at one the other day. The ARV was roughly $175k, and I was hoping the balance on the reverse mortgage was under $100k. However, I took a look at the last statement and saw that the current balance was about $225k (the total payoff would be a little higher). Obviously a pass.

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