August 29th, 2009

A friend’s Dad pass away recently and left him his home which had a Reversed Mortgage?

Dianda asked:


My friend would like to buy the home from the back, (he has I believe 30 days), but he has bad credit and wanted me to buy the house for investment purposes. The house would be under my name, but we will make a contract with a lawyer that when we are ready to sell it the profits are split 50/50. Eveyrthing will be done through a lawyer and in case of my death or his, our share would go to the beneficiary we have assigned.

The property will be rented until we are ready to sell. What I wanted to know is, if this is something that I should agree to, it sound good to me and we’ll both profit from it, but I don’t know if this will affect my credit if I need to purchase a car in the future or anything else.

Any ideas, or thoughts are welcome.

This entry was posted on Saturday, August 29th, 2009 at 5:48 am and is filed under Reverse Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “A friend’s Dad pass away recently and left him his home which had a Reversed Mortgage?”

  1. JEFF COGA Says:
    September 1st, 2009 at 5:47 am

    Reverse Mortgages are tricky… usually gives about 1 year time period to sell the home. My question I have is this… do you have enough equity to sell the property? Since it’s a reverse mortgage the payments which is deferred are tacked onto the principle of the loan… which means it is eating up your equity. If you hold it you might get an upside down house.

    Run numbers on your own… make sure you have wiggle room for errors. I’m not sure what market/area you are in but majority of the market is still declining. My humble opinion.

    Just remember… in real estate… your profit is made when you buy. Meaning you better get it at a discount. When you sell is when you realize your profit.

    Good Luck.