I know some folks in this neighborhood and have spoken to them about this house(and others). We’ve looked at a couple of houses in the area over the last year.
But I don’t understand how this can happen…it smells fishy, and slimy, and devaluating..etc I don’t post here often but I read the wisdom here everyday. Maybe you have some thoughts.
The previous owner was an elderly lady who passed away last Christmas time. She had lived there for decades. The neighbor told me this, as she was her caretaker. So the house sat empty with no activity for about 10 months. Then a few weeks ago, handyman types show up and then on Tues. the For Sale sign with the BIG Red HUD sign attached goes up.
How can a 90 year old woman be in Foreclosure, in a house she lived in for years? And then how does it end up in the HUD category? There was a sale of the property just after she died for 220,000 I think(see link). How is that possible. There was no way to know it was for sale(I’m watching this area very closely).
Then lastly and on a side note…what’s wrong the the Realtor?? Good grief. His main selling points are first, that its a “HUD” property and second, that the property can sit 10+ cars. What? Who is he trying to attract? He makes no mention of the view. The front door looks east towards the Mts. and has a magnificent view. The neighbors would be appalled if they knew how much this could potentially de-value things, right? Especially if they get “10+ cars” on the front lawn…(rolling eyes now).
That price does not belong in that neighborhood. It doesn’t fit…so I don’t understand what’s going on with this property.
Of course, the price is the lowest I’ve seen in that area. Several other house in the area are from 380 to 600.
Here’s how it happens. HUD homes are usually FHA foreclosures. This one was on a reverse mortgage. It was free and clear before she took the reverse mortgage in 2004 so she didnt owe all that much. My guess is no heirs and the lender just wants their money back so its priced at what they need to do that. The market will decide how much it actually sells for. Actually could end up wioth someone getting a deal because of situation and timing. Nothing slimy on the surface.
Not sure, but I don’t think all reverse mtg lenders have to go thru non-judicial foreclosure in CA. Part of their contract may be that if there are no heirs upon death, the lender has the right to sell the property for whatever it will fetch to recover the amt borrowed by the owner. The rest will go back into the estate. In some cases, they may not even need a court order but will still deal directly with the estate’s administrator/administratrix.
TexasLine, that home appears to be well-built with a few nice goodies inside inherent to its “era.” And yes, some of those lots are magnificent around there!
Thanks for sharing and I hope it sells for at least the low $300K-range!
I agree with sdr that it may very well be up-bid from its “reserve” price.
I have seen these reverse mtgs get “foreclosed on” in Bonita, as well. This one is in particularly good shape!
I don’t think “equity robbing” reverse mtgs are a good idea, due to high fees, but some people have to use them to live because they don’t have anyone to take care of them when they get old and their SS is insufficient.
I was having a hard time understanding how a 100% true home owner and the word “foreclosure” could be in the same sentence, but I guess the Reverse Mortgage explains that.
Makes one wonder how many elderly persons would really be a good fit for a Reverse Mortgage. I guess someone who has no inheritor. But how many of those are there?
I still can’t get over the apparent incompetence of the Salesman…;)…got to love a place with room for ten+ cars.
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