The homeowner died leaving a reverse mortgage of $ 340K. There is 1 executor (the decedents 85 yr old cousin) who revealed to me that this reverse mortgage is with Financial Freedom.
Bottom line is that ARV is probably $ 550K – $ 600K minted out.
Even if we pay the $ 340K + $ 25K for the executor and $ 100K in repairs there is still enough room in there for my fee and a reasonable profit for the rehab buyer.
I’m looking to find out if anyone had negotiated down a reverse mortgage balance with one of these companies. That would leave even more profits on the table if we were able to do so.
I’m thinking the reverse mortgage company wants the asset or the balance owed and they win either way.
There is no upside for them to take less than whats owed if they can get the asset which has a higher value than the reverse mortgage balance.