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You would just have to settle on a purchase price with gramps, and payoff the loan at closing
So I should purchase pre-passing?
This is actually a very simple transaction. As oak tree capital just stated, if grandpa will be kind enough to sell it for less than appraised value, that difference can be used as a gift of equity… which essentially creates a down payment out of thin air.
Their reverse mortgage will be paid off at closing and he will be relieved of that obligation.