Purchasing a home tied to a reverse mortgage in Los Angeles
Hello BP. We have a deal in Los Angeles in which an elderly owner wants to sell her home for $600,000. The area is low income, but high traffic and investors are actively converting homes into small multifamily units. The house has two beds and one bath, zoned LAR3, and 924 sq ft (Lot size 2,300 sq ft). We researched the home and found that the owner has a reverse mortgage loan on the property. Does this hinder our ability to purchase the house? What would you do in this situation?
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The sale will be fine and the reverse mortgage lender will receive there payoff from escrow. Seller will receive the remaining proceeds minus sellers share of closing costs.