An interesting thing I have learned about reverse mortgages is that there is no statute of limitations affecting a lender’s ability to take back a property where the owner/mortgagor has died.
While the asset preservation guys were knocking down the doors of my mother’s home within 4-6 weeks of her death, in other cases, they can wait years… like in one case I describe: 13 years and counting.
Sri initiated some very insightful dialogue about a portfolio of 21 reverse mortgages he and his investors bought together… and how a family member of one of them accidentally burnt the house down after his mother died!
Luckily he knew this before he bought the note and priced it accordingly… 50 cents on the dollar (50% of ‘as is’ cash value of the collateral).
I discussed headlines and thought leaders I follow:
- Adam Taggart’s Thoughtful Money
- Melody Wright
- The Alt Report
As much as I love hard assets like real estate, if you think you’re going to NEED to sell any time in the next year or two I’d get ON IT and not waste time listing high and risk getting stale… unless you happen to live in one of those areas that’s still got multiple offers within 48 hours, then of course disregard!
If you’ve been waiting, hanging by your eyelashes for rates to drop, or some other metric, it might be time to have a come to Jesus talk with yourself… if you aren’t already communing on a daily basis.
For most sellers and their Realtors, the only tool at their disposal is a price reduction… sometimes multiple price reductions.
There are other options… TERMS.
Especially if you have high equity, 75%+. Offering seller financing for even 3-5 years can put a LOT more money in your pocket over time.
My guess is once you get used to the income and the tax savings, you’ll fall in love with being the bank and collecting those nice, hassle-free mortgage payments like a nice real estate annuity.
If you have a low mortgage rate, and you’re willing to leave it in place for 3 years, it could make very good sense to consider letting a buyer take it ‘subject to’.
But you need to follow a very specific processes and know EXACTLY what the potential risks could be and how to mitigate them.
If you (or a friend or client) have a higher-end home for sale with a low mortgage rate, and you’d be willing to consider leaving your mortgage in place for a short time in lieu of a hefty price reduction…
Reach out to me, I’ve got some solutions for you.
It’s getting wild ‘out there’ and sometimes it’s hard to cut through the noise.
There are many options you COULD choose, but what option SHOULD you choose based upon your unique set of circumstances?
I’ve been in this space for decades, and have managed a portfolio of notes for 18 years and counting. I’ve learned a thing or two.
Give yourself (or someone you love) the gift of confidence and peace of mind…
Schedule your Deep Dive right now:
https://the.notequeen.com/divedeepandprosper
An hour with me will make or save you thousands, and likely unearth possibilities you never knew existed.
And to make it an absolute no brainer, I’ve got a discount code for up to 10 people to work with me at half my usual rate:
Discount Code: DD50
Once they’re gone, they’re gone.
Let’s meet 1:1 on zoom and get you positioned in the most powerful way possible for whatever this year has in store for us!!
To grab the first half of this week’s Property & Paper Live, check out “Forward Thinking About Reverse Mortgages” on YouTube or Podcast.
To access the full replay, join the Citizens of the Realm community and click on the “Learning” tab.