Owner Financing & Note Investing Podcast with Dawn Rickabaugh · Dawn Rickabaugh | Expert Advice for building wealth through Owner Financing & Note Investing

Reverse Mortgages, Distressed Properties, and the Power of Note Investing

·27 min·1 clip

Dawn says a correction could make seller financing and note buying a “perfect storm” response to market stress.

1. Dawn Rickabaugh opens Property and Paper Live with reverse mortgages, seller financing, and note investing. 2. Dawn Rickabaugh hosts the live session, and Sri brings a real HUD reverse-mortgage servicing question that matters because it involves insurance and collateral after a borrower’s death. 3. The episode asks what private lenders do when a burned reverse-mortgage property and a delayed HUD sale collide. 4. Sri says he bought 21 reverse mortgages from one of HUD’s approved buyers and one property burned down after the borrower died. 5. Sri says the damaged property was appraised at about $120,000 as-is and that he paid about $60,000 for the note. 6. Dawn says the note had forced-place insurance and asks how a lender files an insurance claim when the collateral has already burned. 7. Dawn says she has never had to file that kind of claim and suggests reaching out to the insurer and proving the chain of title. 8. Jack asks whether the fire happened before or after Sri bought the note, and Sri says the burn happened before his purchase. 9. Sri explains that the loan was originated in 2009, the main borrower died in 2019, and the wife died in 2023. 10. Sri says HUD placed lender-placed insurance because taxes were delinquent, then sold the note after the property had already burned in 2024. 11. Dawn says HUD probably keeps transferring large pools of loans and may overlook property-level issues inside thousands of notes. 12. Dawn says the reverse-mortgage documents show violations clearly, but the lender may not have known about borrower death or debt because there are no P&I payments. 13. Dawn says statute-of-limitations questions depend on the state and may hinge on whether a loan was accelerated. 14. Dawn says a reverse mortgage can sit for years and then become active again when the lender wakes up and starts enforcing it. 15. Dawn shifts to Melody Wright, Adam Taggart, and Thoughtful Money as examples of people tracking market stress with detailed data. 16. Dawn cites a 3.8% average discount off list price, about $16,000 on a medium-priced home, and seller negotiations as high as $32,000. 17. Dawn cites $7.1 billion in seriously delinquent multifamily loans, pending home sales at a record low, and a distress pipeline that remains active. 18. Dawn’s tone is practical and market-focused, with a live Q&A format, examples from notes, and direct commentary on current housing conditions. 19. People buying, selling, or structuring owner-financed deals would get the most from this episode. 20. People looking for pure theory without market examples may skip it.

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