I have a guy that called me and said that he has a reverse mortgage on his house but is moving out west and doesn't want to deal with it anymore. He told me what he owes and there is very little equity if any. We talked a bit about doing a sub 2 or me buying it from him on a land contract, but I know little about reverse mortgages and the rules.

I've seen other questions the site about doing short sales on these and that you can't do a sub 2 if the owner dies, but this guy is just moving. Anybody have any input?

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If I understand them correctly you loose equity on a monthly basis when you have a reverse mortgage. That being said, I would imagine you would not want to keep that mortgage going. However maybe the short sale part would be a good way to go.

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Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

Well let me tell you what happened Steve. Freakin crazy. The mortgage is $73,000, but here's the thing... he has two ranch houses the are connected together by a breezeway (and not very well I might add). Everything needs upgraded in both houses. Good news is that it's on 4 lots and has a tennis court in the back yard. Bad things is that it's not in a great area and you would really have to find the right buyer to buy such a unique house(s) like this one. He is asking $125,000 with him leaving everything in the house, and $105,000 with him taking everything. Not sure how he figured that all his stuff is worth $20,000 because to me it looked like a bunch of junk. He says he thinks that he can get $150,000 if he listed it... yeah right. I think he is just real attached to the place because it was the house his father built. I shook his hand and wished him luck.

Here's the crazy part. Dude is probably 80+ years old, married to his third wife that is wheel chair bound, can't talk or communicate, but just sits around. When my wife and I pulled up to the house he was taking his wife out of the van. He told us to look around the outside of the house while he "put momma on the pot". 20 minutes later he came out and we started to look through the house. When we got to the bathroom he said "Hope you don't mind momma sittin on the pot". WHAT????? So we walked through the bathroom QUICKLY and there was momma... sittin on the pot. Good thing she wasn't droppin a duece or anything.

Well, we talked to this guy for an hour and a half and finally he brought up the fact that his wife has been on the pot for that long. He said... "You guys probably think I'm being mean leaving momma on the pot, but that's her favorite place. She would be happy staying there all day if I let her".

I love this business...

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i've been seeing these a lot lately.
all the big banks are starting to advertise these to seniors in order to recoup their losses.
the ownership name and title stay with the occupants, they can get cash out of the equity tax free
sounds like a good reason for established people to not give up their property.

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