Q: can a reverse mortgage be sold/bought as a short sale to a family member/heirs ? house in estate of PA
reverse mortgage amount is higher than value of the house. house was appraised 110. Gift of equity 20.loan 90 with 20% down for my grandson. The mortgage company says that i still have to pay like 7000 closing costs.what about if I do a short sale to reverse mortgage and simultaneal sale to my family. Im 100 years old and live with him because of my health.
Thank you
A: Short sales require the approval of the lender, which is obtained by convincing them it’s the best way to get the most money. Why would they agree to this deal? Why not take the house by foreclosure to cover their loan?
A: You can always approach the reverse mortgage lender and offer to pay the FMV of the home and no more, with an agreement that they discharge the balance. The alternative is that the estate abandons the property and allows it to go to foreclosure. The mortgage company will get a lot less through that process with court and legal fees, delay caused by the foreclosure proceedings, and the generally lower sales values on auctions. In that scenario, there's also nothing stopping you from bidding at the auction on the foreclosure sale, and possibly buying it for even less than you'd pay now, although that's not guaranteed and you may be outbid by others, including the reverse mortgage company which then takes title and remarkets it for sale.
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