A probate property I want to wholesale has a Reverse Mortgage with Financial Freedom.
Googling complaints against Financial Freedom reveals some unsavory practices by that company.
I'm assuming when my buyer goes to contract the title search will reveal the debt owed.
My real question is has anyone run into reverse mortgage / probate situations and can the reverse mortgage debt be negotiated?
Reverse Mortgages tend to be a scammer's playground. Be very careful. Properly structured a reverse mortgage can be a great avenue for those nearing or in retirement as a means of income. Find the best reverse mortgage expert on here (not sure who) and pick their brain. They will help you navigate companies with unethical practices.
I know this doesn't directly answer your question, but it will help you from getting involved in something that can prevent the beauty of wholesaling (speed and quick profit)from happening.
The homeowner died leaving a reverse mortgage of $340K. There is 1 executor (the decedents 85 yr old cousin) who revealed to me that this reverse mortgage is with Financial Freedom.
Bottom line is that ARV is probably $550K - $600K minted out.
Even if we pay the $340K + $25K for the executor and $100K in repairs there is still enough room in there for my fee and a reasonable profit for the rehab buyer.
I'm looking to find out if anyone had negotiated down a reverse mortgage balance with one of these companies. That would leave even more profits on the table if we were able to do so.
I'm thinking the reverse mortgage company wants the asset or the balance owed and they win either way.
There is no upside for them to take less than whats owed if they can get the asset which has a higher value than the reverse mortgage balance.