OfflineHello fellow investors.
I have to start by sharing that the yellow letters work fantastically. I am amazed at the response rate I've received. I may have an opportunity to help someone and, receive a property in return, but; I'm looking for some advice. Here's the scenario:
I was contacted by a lady that is located out of state. She has power of attorney for a property owned by her aunt. The property is worth about 100K. The mortgage is paid off. In 2006, her aunt took out a reverse mortgage for 150K. Her aunt became ill and lives out of state. Because she no longer resides at the property and, taxes are over due(about $1,200), the reverse mortgage company is forclosing. The lady will just sign the property over to me.
I will negotiate with the bank if this is an option. Can anyone provide input on dealing with reverse mortgage forclosures?
Thanks,
Michael
Hi Michael,
I am not an expert on mortgages, but I think even if you get the default amount on taxes paid you would not be able to get the house because revere mortgages don't allow for the house to be gifted to anyone, it would have to be a sale. I would talk to a mortgage specialist to find out the restrictions on these types of loans. If you are going to buy the deal it might work but you would have to short sale it.
Good luck,
Shah