Home Buying in New Britain>Question Details

Pinnacle Mou…, Home Buyer in New Britain, CT

Someone in my neighborhood recently passed away, and had a reversed mortgage on her 2-family home. What is the lowest the bank would accept?

Asked by Pinnacle Mountain, New Britain, CT Tue May 11, 2010

Help the community by answering this question:


James is correct, unless these people took out the reverse mortgage so long ago that this was what happened. If they have a HECM reverse mortgage, which stands for Home Equity Conversion Mortgage, this is backed by FHA. If, by chance, the value does not exceed the amount owed, there is insurance which covers the difference. The heirs, even at that time, are in total control of the sale. If a year goes by, and the home is still not sold, there is a possibility that there could be an issue, but seeing as everything sells at the right price, someone could potentially get a good buy on the house, but only because homes owned by older people are often in need of repairs and updating that put it below the value of other homes in the area that are in better condition.
0 votes Thank Flag Link Wed May 12, 2010
There is not near enough info to give you a correct answer. Unless it has been taken back by the bank already, James is correct the heirs are the owners. Just because they had a reverse mortgage does not mean they do not have equity. If there is equity then the question would be do the owners want to sell? If there is not equity than the owners would just be best to surrender it to the bank. In which case, chances are... you will have to make a fair market value offer.

Good Luck!!!
0 votes Thank Flag Link Wed May 12, 2010
Hi Pinnacle Mountain.....

I am surprised no one has yet said if the home in questioon was financed by a reverse mortgage, the family STILL would own the home or home ownership would revert to the owner specified in probate or by the will.

I am fairly sure the heir(s) will wish fair market value as previously mentioned. You do not give up ownership of the property with a reverse mortgage, a common misconception. Should you or anyone wish more information regarding a reverse mortgage, feel free to give me a call! Jim Ryan, Home Saving of America. 703 591 5626 ext 419.
0 votes Thank Flag Link Wed May 12, 2010
Contact a local real estate agent in your area. They should be able to pull comps on the property for you and help you submit an offer. There is no generic answer to how much a bank will accept on a property, and as Minna stated below, they will likely want fair market value, regardless of how the property was financed.
0 votes Thank Flag Link Tue May 11, 2010
Assuming the bank owns the property, I'm sure they would sell for fair market value.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Tue May 11, 2010

Its is very difficult to estimate what a bank will take.

Please give me Ron G a call at 860-989-7463 of Abreu Realty. He will be able to research the property for you.

Web Reference: http://www.abreurealty.com
0 votes Thank Flag Link Tue May 11, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer