It takes more preparation to sell a home with a reverse mortgage than with a conventional mortgage, but it's possible.
If you qualify for a reverse mortgage, you can tap into your home's value to either a lump sum or a series of payments over time. When your bank compensates you, you no longer have to make payments to it. The reverse mortgage does not have to be repaid until the last surviving homeowner passes away or leaves the property, making it a perfect option for retirees. The sale is part of that.
One common question is whether or not a Refinance Reverse Mortgage Los Angeles would affect the ability to sell a home.
A home purchased with a reverse mortgage can be sold. You are free to sell the house whenever you like, regardless of whether or not the lender insists on it.
However, keep in mind that your reverse mortgage becomes due and you must repay the principal, interest, and fees when you sell the home. It is yours to keep as profit if the sale of your property results in a higher price than what you owe on your mortgage.
Using a reverse mortgage to sell a home: 4 easy steps
First, Speak with Your Lender or Servicer.
Determine your debt to the reverse mortgage lender before proceeding with the sale of your home. In order to find out how much you owe on your reverse mortgage and any associated selling costs, you should get in touch with your lender or servicer.
Winter Park, Florida real estate agent April Palomino recommends getting a written estimate of the payback amount. “Let them know right now that you want to sell your house.”
The second step is to talk to a real estate professional.
Talking to a real estate agent will give you an idea of how much your home is worth and how much you could possibly get if you decided to put it up for sale. Using this information, you can figure out if you have the financial means to settle your reverse mortgage debt.
Due to the complexity involved in selling a house with a reverse mortgage, several purchasers choose to have legal representation manage the payoff of the mortgage on their behalf.
THREE: PLACE AN ADVERTISEMENT TO SELL THE HOUSE
A real estate agent will help you stage your home for sale, take photographs, advertise it, and set up showings for possible buyers. The appraised value of the home must be close to the asking price in order to pay off the mortgage.
Step Four: Dispose of Your House and Get Settled
Your reverse mortgage will be repaid from the proceeds of the sale of your home. Verify with the financial institution that you no longer need their services to ensure a smooth closure of your account.
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