Reverse Mortgage Help

I don't think I understand the situation correctly.

Homeowner has moved to an assisted living facility.

Someone called asking if you'd be interested in purchasing the home. (Bank or former occupant?)

I don't know much about Reverse Mortgages but I would ask on when possession/ownership of the house would change hands. This info should be in the contract. It's possible/probable that if you were to try to purchase this house from the former occupant, someone would have to pay the bank back however much has been paid.

Hi yes the current owner, contacted me, asking if I could buy the home, from a bandit sign he seen. He was moving the owner his mother to a assisted living facility. Was wanting to know how the rev mortgage would work as far as getting rid of the home?, So from what you saying that info is in the contract the owner signed, am I understanding you correct, I would pay the bank the balance owned on the contract, do they not discount them in this persent market? Or should I i form the son to list the property with a reale estate?

In this case you need to see how much is owed on the home, compared to the market value of the property. A reverse mortgage means there was equity in the property and that they are using the equity in the property to cover the mortgage payments so the balance owed goes up every month. If there is enough equity in the property it will be a pretty typical transaction. If the property does not have equity you will be looking trying a short sale or letting it go into forclosure. Because of the reverse mortgage there is no way to do a lease option or seller financing.