Reverse Mortgages

A Personal Testimony: How Just One of Our Clients Avoided Foreclosure

“Jack went above and beyond to help us unload a reverse mortgaged property for my elderly parents. He was efficient, kind, and extremely patient in dealing with their lack of knowledge in the situation.” – Tara

If your parents own a house with reverse mortgages and the home has become too much to take care of, we can help. We are home buyers in Pensacola, and we have the tools to help a homeowner get out of their dilemma. Buy My House Guru was able to solve a homeowner’s problem in the Scenic Heights Neighborhood of northeast Pensacola. The homeowner had a reverse mortgage with a balance much higher than the value of the home. The elderly couple were physically unable to maintain the home. There was plenty of deferred maintenance including a green pool. How do you handle a sale when the home will not fetch enough money to pay off the reverse mortgage, closing costs and commission?


In this Reverse Mortgages situation we pursued a “short sale”.

What is a short sale? First the homeowner must have a financial hardship that makes meeting the mortgage obligation impossible or nearly impossible. Second, when someone must sell a mortgaged property and the amount of money received from the sale is insufficient to pay off the mortgage and the owner does not have the financial means to pay the difference.

Mortgage Amount $175,000.
• House can only be sold for $100,000 due to the condition.
• Owner does not have the money to pay the difference and the owner did not have the money to fix/update the home to sell at a higher price.

Our real-life story was a home in a situation that needed a cash buyer willing to buy the home in “as is” condition. This is where Buy My House Guru came in. We have short sale experience and have dealt with reverse mortgages in the past. Anyway, this home needed over $120,000 in renovation.

Solution was to enter a contract for a cash, as is purchase subject to the owner’s lender approving the short sale. One of our investor’s was the buyer. Short sale experience allowed me to prepare the short sale package to make acceptance of the contract more palatable by the lender.

Prep work for the short sale package:

• Obtain estimates for the renovation. This was an itemized list of costs.
• Provide photos of the home’s condition.
• Provide a market analysis by reverse engineering the value. What do I mean by that? By determining the After Renovation Value of the property and then subtracting out the renovation costs and acquisition costs.
• Then what is very important was to write a persuasive letter explaining the market conditions, house conditions, and the profit motive of the investor.
• All the above sent to the homeowner’s lender. While at the same time making the estimated costs and market analysis available to the appraiser.
• You may ask, appraiser, are you not buying with cash? Yes, the purchase is cash. The appraisal requirement comes in on a short sale from homeowner’s lender. The purpose of the appraisal is for the homeowner’s lender to not undersell the home.

(By the way who owns the loan is another story).

Back to Scenic Heights neighborhood home.

The contract to purchase was signed on September 7th. The short sale was approved on September 24th. That is light speed for a short sale. I have had short sale approvals take as little as one week and some have taken many months. The average short sale takes about 3 months from the time contract is signed to the time the short sale is formally approved by homeowner’ lender.

A short sale is a way to avoid a foreclosure.

If you are in a situation where you would like a little advice, please call us at (850) 616-6377.

Your Buy My House Guru & Friend,

Jack Lara

For fast relief and the highest cash offer for your house in the Pensacola, FL area, call Buy My House Guru today at 1.850.616.6377!

For fast relief and the highest cash offer for your house in the Pensacola, FL area, call Buy My House Guru today at 1.850.616.6377!

eXp Realty, LLC
2325 Creighton Road
Pensacola, FL 32504

Jack Lara CDPE Certified Distressed Propoerty Expert




Please seek financial and legal advice from licensed professionals


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