Upon the death of the original borrower, your mother, the Reverse Mortgage must be settled either by buying a new mortgage by the current occupants or selling the home. It can be sold to anyone but it should be sold a current market value or at least for the payoff of the current RM balance if the home is worth more than the balance due. Yes. you can purchase the home and settle all back taxes due at settlement. Unless you are over 62 and plan to occupy the home you will need to buy a "forward mortgage". If you are over 62 and occupy, you could buy forward mortgage, settle the property transfer and then acquire a Reverse Mortgage to pay off the current "Forward Mortgage " balance thus leaving you with no monthly payments.
Remember that Reverse Mortgage is a reverse amortizing contract. This means that interest is acculating on the balance due and as time goes by you will pay interest on the interest. The balance due can spiral very quickly.
If I can be of further service to answer your questions, please calol me at 410-979-0178 or write to chuckmlr@comcast.net. I AM NOT A MORTGAGE BROKER. I AM A LICENSED REAL ESTATE AGENT IN MARYLAND.
Chuck Miller
