[WSBARP] Reversing the reverse mortgage

[Nicholas Pleasants]

Hi Andrew,
I’ve done a few of these over the years, though I no longer handle real estate transactions and escrow on a regular basis. I suggest checking the Residential Seller Financing rules on DFI’s site and consider having the nephew apply for a Residential Seller Financing License Waiver to protect him from violating the Consumer Loan Act. https://dfi.wa.gov/residential-seller-financing
Best,
Nick

Nicholas Pleasants
Owner

[(Logo) Pleasants Law Firm]<http://www.pleasantslaw.com/>

Pleasants Law Firm, P.S.
2300 130th Ave NE, Suite A-101
Bellevue, WA 98005-1755
(425) 615-7070 tel/fax
nick at pleasantslaw.com<mailto:nick at pleasantslaw.com>
www.pleasantslaw.com<http://www.pleasantslaw.com>
The information contained in this e-mail message may be privileged and is confidential information intended only for the use of the recipient, or any employee or agent responsible to deliver it to the intended recipient. Any unauthorized use, distribution or copying of this information is strictly prohibited and may be unlawful.
If you have received this communication in error, please notify the sender immediately and destroy the original message and all attachments from your electronic files.


From: <wsbarp-bounces at lists.wsbarppt.com> on behalf of Andrew Hay <andrewhay at washingtonlaw.net>
Reply-To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Date: Wednesday, April 14, 2021 at 5:29 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Reversing the reverse mortgage

I have a nephew who is helping his uncle out in later years.  Uncle has a reverse mortgage eating up equity in his home with a current balance well below FMV.  Nephew is also helping out with monthly bills.  Nephew wants to front the money to pay off the reverse mortgage and substitute his own DOT in first position.  The note and DOT will increase as he makes advances to the uncle.   We are planning on closing through a title company and getting title insurance for the nephew – any special considerations here?

Andrew Hay
Hay & Swann PLLC
201 S. 34th St.
Tacoma, WA 98418
www.washingtonlaw.net<http://www.washingtonlaw.net/>
andrewhay at washingtonlaw.net<mailto:andrewhay at washingtonlaw.net>
253.272.2400 (w)
253.377.3085 (c)
THIS IS A CONFIDENTIAL COMMUNICATION AND IS INTENDED FOR THE DESIGNATED RECIPIENT ONLY.  IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY THE SENDER IMMEDIATELY AND DESTROY ALL COPIES

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20210416/02d3614a/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 39035 bytes
Desc: image001.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20210416/02d3614a/image001.png>