Experiences with buying reverse mortgages at auction?


#1

Anything tricky to watch for?


#2

I purchased a property at the trustee sale of the reverse mortgage. The woman had died and the heirs were unable or unwilling to refinance and to keep the house. I learned that there were 3 specific conditions to the deed of trust. The borrower must be 62, be alive and reside at the property. Once she died, the lender gave the heirs about a year to settle the estate and payoff the mortgage. They did not, so the lender foreclosed. Although she was not living there, her personal property, therefor her heirs property was still at the house. Fortunately, we located the son and he cooperated in removing the property and giving us the keys.


#3

This is a bit of a niche financial product, as they are only accessible to seniors. The loans can provide some funding for retirement, but the CFPB is looking into the goods to see if any additional legislation could be warranted. Source for this article: shouldn’t you detect for your own for https://personalmoneynetwork.com/?


#4

Yes - Reverse Mortgages are complex.? California Civil Code and the Homeowner’s Bill of Rights apply.? IF a FHA insured reverse mortgage HUD regulations also apply in the foreclosure process.??Be cautious and take due diligence steps.

Sandy Jolley, Reverse Mortgage Suitability and Abuse Expert

sjolley2@compuserve.com 805 402-3066