Check This Out........
is this even possible.
can you aquire a property sub 2 from an owner whom is deceased. the prop is in a living trust and the trustee just wants to wash his hand of it.
here is the kicker.....the prop has a Reverse Mortgage on it. i am unclear asto the particulars of the note, this is still in the very preliminary stages. i do know that the mortgage is up in the area of 140k to 155k oweing. after rehab, yup its a rehab to, im estimating in the realm of 240k to 250k, and probably about 45k in rehab costs.
how can i structure this?
dont reverse mortgage's have like a ten year draw period, ten year repay,or does it just depend on the verbage on the note? ive never seen any mention of sub2 a reverse mortgage, so im unclear. and if it stayes in place and he was 5yrs into his ten year draw, am i collecting rent for five years and refi at the start of the repay,or is this just not possible, id hate to think anythings impossible.
thanx to all replys.
I don't see why you couldn't take the home sub2 a reverse mortgage. You should read a copy of the note and mortgage. The mortgage can be found at the local recorders office or hall of records. (Mortgages are called Trust Deeds in some states)
You should check to see how many payments remain and how much and also what happens at the end of the draw period.
I would guess that you could convert the reverse mortgage into a regular mortgage. You could aquire the property for $10 and then use your rental income to start paying off the principal.
GOOD LUCK
man im so jazzed! i just got back from inspecting the prop tonight......got my hands on the note, deed, and all the other loan docs.
got a good feeling, still have to go through the docs........i just had to tell someone. any other examples or reminder or steps to take.......beauty mate!! :-D