Reverse Mortgage Q

[jay trotta]

Poking around the other day and decided to do a Q&A on an agent, foreclosure Offering;

Property is Listed At; $200,000 (random) inquire to agent regarding an Offer - they say No offers, this is the number as "appraised" and they will accept no lower offer. All numbers are based on a Reverse Mortgage Debt....hmmm

1) dwelling needs Total Rehab 2) Mold 3) Freeze Damage ect. / slew of paperwork must be signature along with Contract that entails; "Hold Harmless Release Form".

If you were to draft a contract, would you request a copy of the Appraisal ?? A copy of the Environmental Report ? ect.

 

[Flakey]

they say No offers, this is the number as "appraised" and they will accept no lower offer. All numbers are based on a Reverse Mortgage Debt....hmmm

This is a typical Fannie requirement. On reverse mortgage REO properties, the listing price is based on the appraisal. The only way they will lower the price is to have the property appraised again, which does happen if no acceptable offers occur in the time period noted in the original appraisal (usually 90 days). Most times, the repair estimate is done by the appraiser and can be significantly off. If you are serious about an offer and not just fishing, I strongly urge you do your own due diligence and get your own repair estimate by a professional. Generally, these properties go to an investor/flipper because they don't qualify for financing "as is".

 

[KHS445]

Absolutely request a copy of the appraisal and any other related documents as that is what they are relying on to determine their bottom line. If they are telling the truth there shouldn't be any problem sharing the appraisal or any other reports. I kind of doubt they have an appraisal, probably based on a BPO from the listing agent/broker.

As the kids say if there are no pictures it didn't happen.

If I were seriously interested in the property I would ask for all appraisals, reports and documents they have regarding the property. I would then do my own inspection, valuation and research to either verify what I had been given and/or to draw my own conclusions as to value, condition and issues that need to be dealt with. Once satisfied and if not scared away I would make a reasonable offer with all of my research and documentation attached. It is difficult to argue with hard facts.

 

[Denita Neuenhaus]

Poking around the other day and decided to do a Q&A on an agent, foreclosure Offering;

Property is Listed At; $200,000 (random) inquire to agent regarding an Offer - they say No offers, this is the number as "appraised" and they will accept no lower offer. All numbers are based on a Reverse Mortgage Debt....hmmm

1) dwelling needs Total Rehab 2) Mold 3) Freeze Damage ect. / slew of paperwork must be signature along with Contract that entails; "Hold Harmless Release Form".

If you were to draft a contract, would you request a copy of the Appraisal ?? A copy of the Environmental Report ? ect.

If you can get any documents from the seller/asset manager then that is a real step forward. Normally when they are selling these f/c units they have nothing - even if they do have documentation they refuse to provide it IME.

 

[Flakey]

On reverse mortgage REOs from Fannie, there is an appraisal. Getting a copy will not help you negotiate the asking price. Do your own due diligence and make an informed decision. Someone will. You can always offer more than the asking price.

 

[Bobby Bucks]

Another thing to consider, the PCR for the property (if there is one) may not have been completed by a licensed contractor, may not be accurate and may not be for the correct property. I recently had a HUD assignment and the PCR was completed for a vacant Fannie property across the street. When I brought it to the attention of the M & M people they were upset at me because I was delaying the process and affecting turn time, I think I got demerits on my scorecard. With that being said, due to the inefficiency of the system, there are nuggets of gold out there.....for the buyers. :- )