Does anyone have any insights on a short sale for a reverse mortgage. Even though we have done 100's of short sales over the last eight years, this is new to us.
The home is upside down. The lender is BOA. Any guidance is appreciated.
You need to be a member of Short Sale Superstars to add comments!
**********************************
like buttons
Replies
1) Good news – The HECM is a “non-recourse loan”. This means that the HECM borrower (or his or her estate) will never owe more than the loan balance or value of the property, whichever is less; and no assets other than the home must be used to repay the debt.
2) The property (as with most short sales) MUST BE SOLD AS IS – This is a HUD requirement
3) An FHA appraisal MUST be submitted with the offer (paid by the seller – not buyer)
4) The servicer is likely NOT the seller – Payoff must go on line 504 of HUD-1
5) If the appraisal expires it is the SELLER’S responsibility to procure another one.
6) HUD is VERY specific in what are allowable costs on the sellers side of the HUD-1.Follow BOA'S EXACT guidelines on what they will allow on the HUD-1. they will send it to you if you call the reverse SS department.
7) When title is pulled you will see two liens. One will be the servicer and one is the HELOC. The servicer will acknowledge in the approval the lien has a zero balance and the HUD-1 for release and then the HELOC is getting paid off
8) You will NOT NEED TO USE EQUATOR for the sale. Just fax directly into reverse ss department.
Keep in mind the above information and your reverse short sale SHOULD go smoothly.
http://massachusettsshortsales.net/2012/05/the-reverse-mortgage-sho...
Smitty: Really quality stuff. Thanks a lot for your help!
No problem Jim. I love reverse ss, with BOA especially. If you need anything, let me know.