Selling a home with a reverse mortgage is not as straightforward as selling a home with a conventional mortgage, but it is possible with some preparation.
With a Refinance Reverse Mortgage Los Angeles, you borrow against the equity in your home in exchange for a lump sum of cash or a series of monthly payments. Instead of paying your bank, you receive a payment from it. The reverse mortgage does not need to be repaid until the homeowner dies or vacates the property. This can be a terrific option for seniors to cover living expenses throughout retirement while remaining in their home. This includes sales.
Can a home be sold with a reverse mortgage?
Yes, it is possible to sell a home with a reverse mortgage. Your lender cannot compel you to sell the property, but you are free to do so whenever you desire.
Keep in mind, however, that when you sell your house, your reverse mortgage becomes due, and you will be responsible for repaying the loan total plus interest and fees. If the value of your home has increased and you are able to sell it for more than you owe, you get to retain the difference.
Four steps to follow when selling a home with a reverse mortgage
- CONTACT YOUR LENDER OR SERVICING COMPANY
To begin the process of selling a house with a reverse mortgage, you must first determine how much you owe. Contact your reverse mortgage lender or servicer to establish the amount you owe and any selling-related expenses.
April Palomino, a realtor at Coldwell Banker Residential Real Estate in Winter Park, Florida, said, “I would also want the complete payout quote in writing.” “At this time, let them know that you intend to sell your home.”
- CONSULT A REALTOR OR AN AGENT OF REAL ESTATE
Your real estate agent will be able to assist you in determining the value of your home and the possible selling price. This can help you determine if you can repay the amount of your reverse mortgage.
Due to the complexity of selling a house and paying off a reverse mortgage, some buyers hire a real estate attorney to guarantee that the reverse-mortgage payoff is handled correctly.
- PLACE THE HOME ON THE MARKET
If you engage with a real estate agent, they will assist you in preparing the home for sale, taking photographs, marketing the property, and coordinating showings with prospective buyers. When deciding on a list price, keep in mind that you'll need to sell the home for close to the appraised value in order to cover the remaining debt on your mortgage.
- SELL THE HOUSE AND RELOCATE
The proceeds from the sale of your house will be used to pay down your reverse mortgage. Verify with your lender that you are finished and that your account has been closed. Then, you will receive any remaining funds after the loan has been repaid.
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