: As the buyer, your purchase price must be high enough to cover the full reverse mortgage balance plus any other liens, unless the lender agrees to a short sale.
: Be aware that lenders typically give heirs 30 days to decide on a course of action once the loan is called due, though extensions up to 6 months (and sometimes 12) may be possible if the home is actively being sold. Financial Checklist for Buyers Reverse Mortgages - FTC Consumer Advice buying a home that has a reverse mortgage
: The lender will typically order an appraisal to determine the current market value, which is vital if the loan is "underwater" (balance is higher than value). : As the buyer, your purchase price must
: Request a formal payoff statement in writing, including the FHA case number and property address, to know the exact amount needed to clear the lien. : Request a formal payoff statement in writing,
: If you are an heir buying the home, HUD rules allow you to purchase it for 95% of its appraised value , even if the loan balance is higher.