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How do we buy a house back that had a reverse mortage?

2 answers | Last updated: Oct 09, 2014
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A fellow caregiver asked...
When my grandma died, we found she had a reverse mortgage on her home. We want to buy the house back but don't know where to start. Do you have advice?
 

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Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their...
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answered...

You should start with the company that is servicing your grandmother's mortgage. This may or may not be the lender. She should have been receiving monthly statements from the servicing See also:
What are the risks with reverse mortgages?
company. The servicing company collects a monthly fee that is charged back to the reverse mortgage. They should be able to either put you in touch with the lender or advise you how to pay off the loan.

You have 6 months from the date your grandmother passed away to pay off the loan. If you need additional time, you can get a 3 month extension and, in extreme cases, an additional 3 month extension (for a total of 12 months.)

You should do a financial analysis to make sure paying off the loan and keeping the house makes financial sense. If there is equity left after the loan is taken care of, you will be ahead. However, if more is owed on the mortgage than the house is worth, this may not be a sound investment. Of course, you may have other non-financial reasons for wanting to keep the house.

 

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sjolley2 answered...

You have rights and options to purchase the property that most lenders will not disclose to you. Most heir do want to keep the property and have no idea how to go about that. I can identify your options and rights and tell you how to proceed with a free assessment. Sandy Jolley Reverse Mortgage Suitability and Abuse Expert

 

 
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