Wednesday, May 20, 2015

How to sell a house with a reverse mortgage on it, specifically in New York state?


My grandmother took out a reverse mortgage on her house a few years before she passed away. My mother is the heir of her estate and has been living in the house since my grandmother passed away. The house has become something of a money pit due to all of the repairs that need to be done to the property. My mother has been paying the home owners insurance and the Department of Housing and Urban Development (HUD) has been paying the property taxes. The reverse mortgage has been transferred to multiple companies, the last of which last send a statement in February of 2013, with a hand written note at the top that says "Forclosure-Assigned."

The repairs on the house are getting very costly and my mother is talking about moving. She would like to look into selling the property as it is a sellers market in her area right now. She is not sure where to look first for help with selling. Do we get a lawyer to help with the information between the company who owns the mortgage now, or do we get a real estate agent and just sell the house and the money goes to the lender first?

Any information is greatly appreciated. Thank you in advance.

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