Reverse Mortgage Short Sale (?)

By
Real Estate Agent with Coldwell Banker, Mulleady, Inc. Realtors 42118

Did you know that 60% of all Reverse Mortgages are upside down?

 

I'm hoping an AR member can help my family with our situation:

Our Mom, sadly, passed away and left an estate with a house worth about $225K (before repairs), a reverse mortgage of $308K, and around $200K in medical bills.  

Our parents dream was always to save the house for use of the kids and grandchildren on vacation.  The kids want that dream to go on and have some sort of means to facilitate it.  

Do we let it go into foreclosure?

Do we attempt a Short-Sale purchase from the lending party?  Is this even an option?

Any advice would be greatly appreciated.  

 

Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Talk to the mortgage holder on this one.  Not sure if any difference because it is a reverse mortgage.

Jan 17, 2012 02:50 AM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Broker / Author / Advocate/Short Sale

Check out the regulations of reverse mortgages and determine if the bank can obtain MORE than what the home's market value is worth, regardless of the debt incurred.  Remember, reverse mortgages are FHA backed loans.  You should be able to perform a short sale on the reverse mortgage. 

Jan 17, 2012 02:59 AM