Buying A Home That Has A Reverse Mortgage -

: Be aware that lenders typically give heirs 30 days to decide on a course of action once the loan is called due, though extensions up to 6 months (and sometimes 12) may be possible if the home is actively being sold. Financial Checklist for Buyers Reverse Mortgages - FTC Consumer Advice

: The lender will typically order an appraisal to determine the current market value, which is vital if the loan is "underwater" (balance is higher than value). buying a home that has a reverse mortgage

: If you are an heir buying the home, HUD rules allow you to purchase it for 95% of its appraised value , even if the loan balance is higher. : Be aware that lenders typically give heirs

: It is critical to contact a title company early to verify the property's ownership and ensure no foreclosure actions are pending. : It is critical to contact a title

: Request a formal payoff statement in writing, including the FHA case number and property address, to know the exact amount needed to clear the lien.

: If the original borrower is deceased, you must work with the authorized heir or executor to communicate with the lender's servicing department.