The Reverse Mortgage Short sale Option in Massachusetts and New Hampshire

The Reverse Mortgage Short sale Option in Massachusetts and New Hampshire

So you or a loved one are under water with their home and wondering if there is an option for you to sell.   We offer reverse mortgage short sale negotiation (free to any seller {like our traditional negotiation}) and know the process thoroughly.  There are some key things to remember when negotiating a reverse mortgage short sale.

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 services 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.  We know what is and isn’t allowed, so if you have questions CONTACT us and we can go through your HUD-1 with you.  If you put non-allowable costs on the HUD-1, you will prolong the sale

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

Keep in mind the above information and your reverse short sale SHOULD go smoothly.  We are happy to assist you with your servicer and work with reverse mortgage short sales on a continuous basis.  We may consider paying the FHA for a seller if they are truly insolvent.

Your Massachusetts, New Hampshire and Maine SHORT SALE CLOSERS!

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