In purchasing a home, buyers tend to focus a bit too much on the price of a home and do not consider enough the monthly payment. As a buyer, you must be concerned not about price but instead
Featured Transaction Reverse Mortgage Short Sale
We just sold another property in Merano, Palm Desert. Merano is a small, gated residential community in Palm Desert. This home was a Reverse Mortgage short sale.
If you’re age 62 or older, you can receive money from your mortgage company by borrowing against the value of your home through a reverse mortgage. The payments you receive along with accrued interest and other charges increase the loan’s balance and decrease your equity in the property.
- Pay property-related expenses on time. Property-related expenses, also referred to as“property charges,” include real estate (property) taxes, utilities, homeowner’s insurance(also referred to as “hazard” insurance), homeowner’s association (HOA) fees, and flood insurance premiums (if applicable).
- Maintain the property’s condition. Property must be maintained in the same condition as when the reverse mortgage loan was originated.
- Live in the property as your primary residence. This must be certified on an annual basis.
Failure to meet any one of, or all the above noted requirements, can result in the loan going into default and can result in foreclosure. In addition, if repairs were required when the loan was originated, those repairs must be completed (and inspected) within 12 months.
If your home is underwater, with a reverse mortgage balance greater than its market value, a short sale could make sense. Short sales have become much more common in recent years. However they are a complex, finicky process and time consuming . It’s always best that you work with a Realtor with considerable experience conducting short sales in particular, to avoid having the deal fall through.
In our case, we had to be on top of it making constant calls and/or emails even after he got short sale approval. Persistence almost always leads to success. After long negotiation and keeping all the parties together (Lender, Owner, Buyers, Buyers agent), we were able close this transaction.
Michael has over 40 years in the Real Estate industry. He developed one of the top producing Teams in the Palm Springs area, ranking in the top 25 Teams in Keller Williams International. Michael is cu....
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