Cash Buyers and Reverse Mortgages
Hey, this is Brian Sullivan, with World Class Ventures, your local San Diego house buyer.
Hey, we want to go over a deal we did a couple weeks ago. It was in La Mesa. And it involved a reverse mortgage. Reverse mortgages are very popular right now for a variety of reasons. A couple biggest things are they have no payments, you can use that money any way you want. Tax free money, by the way. You can use it anyway you want. So you can go on that trip you’ve always wanted, you can buy something for your kids, your grand kids. It doesn’t matter what you use it for.
But there are some disadvantages and probably the biggest one is the interest and the fees that accumulate over the lifetime of the loan. And if you move out of the home or you’re leaving the home to your heirs, that loan needs to be paid off as soon as possible because the fees and the interests are just accumulating. So that’s where a cash buyer can help in those situations. They can do a quick close and pay off that loan as fast as possible to get rid of those fees. Because every day they’re just accumulating, and accumulating, and accumulating.
So in La Mesa, we met with a seller. It was her mom’s property. And her mom had done a reverse mortgage, which she said was great for her. She got to go on a couple trips that she couldn’t have done because the equity was stuck in her home if she didn’t take it out. And she was able to live a little less stress free. So a lot of the great things about it. But when the seller took over the property it needed some work. And there wasn’t enough equity left for her to do work in the property to fix it up to make it brand spanking new.
So we went out, took a look at the property, and made her an offer. She accepted. We then closed. We opened escrow and closed in, I think it was 17 days. It would’ve been faster, but the mortgage company, the reverse mortgage company unfortunately just took a little longer to get the payoff, get the full balance of the loan. So that worked out. We paid off her loan and she got the balance of that. That any equity left in the property which was great for her. And she didn’t have to do anything with the property. And we closed a lot quicker than a conventional buyer.
So if you have a property like this or you have any questions, please give us a call. I’d be happy to help. 760-201-0911. Or visit us at wcvhousebuyers.com. Thanks so much.