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Well got the reverse mtg Reo in. Studied everything I could find about the process. Apparently things have changed ?? Decent house, priced good. Personal property still in home ,some rooms you can barely get through, garage is packed floor to ceiling . These are nice things not trash.(posted a pp eviction notice for 15 days , no one contacted me or attorney) Of course they list before approval to removal of everything so now buyers want to buy things left ? Apparently this asset co. has their own rules also ? Offers need to be at least 100 % of appraisal list price. No negotiating of list price. It's been listed 5 days , the appraiser just called me today ?? I put specific instructions as an attachment in the mls.I know many are not familiar and explaining the process would reduce questions ? Instructions state buyers with financing must also get a pre approval through sellers specified lender but they can still use their preferred lender. NOT, when buyers call this lender they tell them they don't do loans under $70,000. No utilities unless buyer puts them in their name. Good , I like that. AS IS ? Agents and buyers call complaining copper is gone, deck needs stained, Will seller take this in to consideration ? NO, no repairs !. Mind you the copper may be gone ( thank you field service) , the deck (with Gazebo) does need cleaned and stained but this is a very nice home, carpet in family room doesn't even need cleaned , hwd floors through out , walls don't even need paint ! This home is listed at least $10-15000 under mkt value !! In a very good neighborhood ! Oh my God people READ THE INSTRUCTIONS I have provided ( which I state in the comments in the mls) and explain everything to your buyers !!! NO REPAIRS, No negotiating, No buyers can't do repairs ! No seller does not pay buyers closing costs ! I have been a Realtor for over 20 yrs. Agents argue, BUYERS DON'T listen !! I have had buyers sign a statement stating everything I have told them and they will still say they didn't know or I didn't tell them !!! I am sure we will see more Reverse Mtg foreclosures coming up and I really don't mind doing them, especially ones like I have now.
And this is why the buyer agents hate me. They don't believe my VERY explicit instructions. They challenge me and disbelieve me. They disparage me. They call me difficult to work with.
The HECM servicers have no wiggle room. The lenders must abide by the regulations of the HECM. And the listing agents take all of the abuse.
I am sure we will be seeing more reverse mtg foreclosures . if we want the business we need to learn how it works. It's my understanding these are insured by fannie mae. X amount of $'s need to recovered . My minimal experience with the homes I have dealt with they are "appraised" below actual mkt value, minimal deferred maintenance in a decent area.I'm sure that's not always the case . I've learned listing everything in an attachment in the mls and stating in agent remarks READ ATTACHMENT FIRST , then call me with questions does help for the most part but buyers and agent will still say "but plumbing is gone, needs garage door, whatever. Well guess what this isn't the traditional REO ! It is what it is. Unless the house burns down the list price is the purchase price OR MORE.
Reverse mortgage REOs are still FHA loans that have been foreclosed upon. (Surprised it wasn't a HUD?)
not exactly sure what you mean? It says insured by hud
Well I knew it was too good to be true !! Got multiple offers . My instructions same as the ones I did before. Offers at 100% or more of appraisal which is the list price, $64000. They accepted a cash over $11000 over list. Last Tues before we received seller signed docs I get an e-mail saying someone messed up ?? The appraisal they were going by was over 90 days old . They had to order a new one (a week after this one was listed !) with the mls list price. So previous appraisal last May, $64000,different appraiser appraising about 10 days ago came in $85000 ??? Over $20000 difference ? They are going to see if the last appraiser will adjust her/him their mkt value ?? In the meantime the accepted offer, single mom with one daughter is on hold. Oh my God !!! This is my 4th reverse mtg foreclosure , never had this happen with before. Buyers agent is @#% !! I feel stupid, he's threatening to sue if she looses out on the house??
Sue who? The bank? The appraiser? The asset management company? Ok. Let em.