Skip to main content

Possible to scam the reverse mortgage lender?

Question for all you smarty pants's on here

​

My retired dad wants to get a reverse mortgage on his property that would be equal to about 50% of the equity currently in it, at some point it's possible that the loan compounds and becomes greater than the value of the property, so if I wanted to keep the house I'd have to pay more potentially than the house is worth. My choices are to leave them the keys and walk away, or sell it myself and try to settle with them for market price.

So the question becomes, how does the lender protect themselves if I sell the property to a 3rd party to sell at a much lower price than market value to settle the loan, after which they just sell it back to me.

It would be a non-HECM jumbo loan so the terms are a bit different, but the broker said the lender doesn't control the title so I would be able to dispose of the property myself. I'm sure there's fine print somewhere pertaining to this but would be nice to know if there's a loophole there

submitted by /u/whenarentI
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/k3w34v/possible_to_scam_the_reverse_mortgage_lender/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...
Post a Comment
Read more