Reverse Mortgages

Tammy~ Some of these homes will be found on the MLS...Being sold "as-is."
"This property is being sold subject to 24 CFR 206.125."

In many cases these were probably RECMs taken out during the boom by someone over 62 and in many cases, not all, they are in better condition than most other REOs because they were transferred back to the lender due the death of the owner rather than as a result of a financial or fraudulent situation. They're becoming available due to the drop in the value of homes since the peak of the market when some Ginnie Mae lenders were aggressively marketing reverse conversion mortgages. The expectation at that time was that values would continue to increase. These REOs typically don't have any owner occupant or NSP buyer restrictions when they come on the market. Some of these properties are very good values and usually end up having multiple offers on them.

Similar to Homepaths and HUDs, they generally will not sell the property for less than the asking price which is usually an [as-is] appraised value established by an FHA roster appraiser. They are sold "as-is" at the time of closing with no repair reimbursements or allowances. They won't pay for home warranties either. Home inspections and the connections of utilities for inspections will be at the buyer's expense. Also the seller will not contribute to buyer's closing costs.