A Home Equity Conversion Mortgage Short Sale also know as HECM and a Reverse Mortgage is a mortgage in which a homeowner relinquishes equity in their home in exchange for regular payments, this is typically to supplement retirement income. A difference between a reverse mortgage and a traditional mortgage is unlike traditional mortgages, which decline as you pay down the loan, reverse mortgages rise over time as interest on the loan accrues.
A Home Equity Conversion Mortgage Short Sale requires the property to be in a Short Sale position, for this to happen the reverse mortgage on the property has no equity and the property is put up for sale and the proceeds of the sale will not fully satisfy/payoff the loan on the property.
Most reverse mortgage programs are HUD backed and per HUD Novad Management Consulting is the newest loan servicing contractor for Home Equity Conversion Mortgages (HECM also known as a Reverse Mortgage ). As of September 29, Novad is responsible for servicing FHA single-family Secretary-Held Assets, including assigned HECMs(also known as a Reverse Mortgage ).
Novad Management Consulting has replaced the previous servicing contractor Deval LLC. Home Equity Conversion Mortgages (HECM also known as a Reverse Mortgage ) are serviced directly by Novad. When you are in a Reverse Mortgage Short Sale position it is imperative that you contact Novad to initiate a Novad Reverse Mortgage Short Sale. Processing a Reverse Mortgage Short Sale can be difficult as the majority of representatives there are not privy to short sales ,it’s important to be able to navigate the mortgage servicers system efficiently or the runaround can make your review last ages.
Here are some basics directly from Novad for processing a Novad Reverse Mortgage Short Sale.
You must first list the property for sale with a trusted Realtor who will get an offer on the home as quickly as possible. Once an offer is obtained and accepted by the seller of the property its very important that you submit your documents to get the ball rolling. Once the Offer is received by novad you must get Novad to order a property value as quickly as possible. In a Novad Reverse Mortageg Short Sale Novad will order the value once the proper documents are received. Once a value returns they will only accept an offer at the value amount, in a Novad Reverse Mortagage Short Sale Nopvad will order an Appraisal from a HUD approved vendor. Since Novad will not go any lower than their value for this type of loan(Home Equity Conversion Mortgages [HECM also known as a Reverse Mortgage ]) if there is any significant property damage then you can try and complete a value dispute with Novad. In some cases its possible to succesfully complete a value dispute that results in a lowered value even with out significant property damage. The Process of disputing a Value with Novad can also be difficult as the majority of representatives at Novad are not always the most knowledgeable in Reverse Mortgage Short Sales ,it’s important to be able to navigate the mortgage servicers system efficiently or the runaround can make your review last ages.
If you have questions about an underwater mortgage, loan modification, foreclosures ,short sales , Reverse Mortgage Short Sale please call us at 888-572-8020.