That incentive payment could be applied towards settling junior
liens - so, if a junior
lien - holder was playing hardball, holding out for more money in order to
release a
lien, the seller might be forced to use their incentive money for that purpose, and
never actually see any of the cash.
The main challenge that is presented on reverse mortgage transactions are old
liens or encumbrances that have been paid - in - full but were
never released of record in the county records.