The FHA HECM is a multi-facited financial product. One of its advantages is that it provides that heirs can buy the property from their parents’ estate for 95% of whatever is the appraised value when the last of the parents have died.
Who is the loser here? The parents did not lose because they had no mandatory mortgage payments for many years. They only had to pay the taxes and insurance. The only loser would be the HUD fund, and that is one reason why there is a larger than usual mortgage insurance fee when you take out a HECM reverse mortgage.
If you have questions, call the Reverse Mortgage Attorney at 425-774-6611.
James Robert Deal
Real Estate Attorney & Real Estate Managing Broker
PO Box 2276 Lynnwood WA 98036
Law Office Line: 425-771-1110
Broker Line: 425-774-6611
Cell & Text Line: 425-670-1405 (better to send email)
KW Everett Office Line: 425-212-2007
I help buyers, sellers, brokers. Flat fee payable at closing.