Question by MisterRE: If a property has a reverse mortgage and the owner has passed away, is there a way for the heir to refinance?
Due to market conditions the heir is having difficulty selling the property. The reverse mortgage has an unusually high interest rate. Is there a way for the heir to refinance and rid himself of the reverse mortgage?
Answer by utreinvestor
This property can be refinanced but it would be considered an investment propety unless the person who does the refinance is going to live in this house. Either way, your refinance is simply a question of being able to qualify for the loan.
What do you think? Answer below!
Yes, you are perfectly welcome to refinance the property and pay off that debt.
The clock is running here. Typically when the owner passes away, the heirs only have one year to do something to pay that debt off, or the lender will start foreclosure. Yes you can refinance, but if the heir is having trouble selling for what is owed, they might also have trouble finding a refinance for as much that is needed to pay this off.