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Can a HECM for purchase be used to satisfy outstanding payment obligations associated with a land contract?

April 26, 2017associated contract hecm land obligations payment purchase satisfy Used

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Can a HECM for purchase be used to satisfy outstanding payment obligations associated with a land contract?

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Yes, if the property will be used as collateral for the HECM and the mortgage will be held in fee simple, or on a leasehold under a lease for not less than 99 years which is renewable, or under a lease having the remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest mortgagor.