Can you sell a house with a reverse mortgage? Homeowners often ask this question after obtaining this type of home loan. You can avoid monthly mortgage payments with one for as long as you live in the home, but is your residency permanent?
At Home Buyers of Savannah, we buy houses in Rincon, GA. Continue reading our post for more details on selling a property with a reverse mortgage loan.
Is It Possible To Sell a Home With a Reverse Mortgage?
Can you sell a house with a reverse mortgage or lien? The short answer is yes.
The home-selling process under such conditions isn’t the same as it would be for selling a property without them. If you choose to put the house on the market, the loan would become due, and you must pay it at closing.
What To Expect When Selling a Property With a Reverse Mortgage
The proceeds from your home sale will first go toward settling the reverse mortgage. It’s important to ensure that you know your property’s value, the loan amount you owe, and how much the sale will profit you.
Let’s say your house’s value appreciates. In that case, the sale would cover the loan balance, and you would receive the remaining funds. Yet, if your property loses its value, you may not have enough money from the sale to satisfy the loan, pay closing costs, and cover additional fees.
How To Sell a House With a Reverse Mortgage Loan
You now know the answer to “Can you sell a house with a reverse mortgage?” Below, you can learn the steps to do so.
- Consult your lender: You must notify your lender before selling your house with a reverse mortgage and request a mortgage payoff quote.
- Find a real estate agent: Look for a real estate agent with experience selling properties with reverse mortgages for help determining your home’s worth.
- List your house: Put your home up for sale after consulting with your lender and your agent. Inform potential buyers about the lien and your intention to settle it.
- Sell the property and pay off your loan: Pay off the loan, cover closing costs, and collect the remaining profit.
Alternatives for Selling a Home With a Reverse Mortgage
If your home’s value drops too much, your reverse mortgage may become an underwater mortgage. In such a case, a short sale can help you sell the house, avoid foreclosure, and minimize the hits to your credit. Refinancing your reverse mortgage or taking out a home equity loan are other options.
Initiate Your Property Sale Today With Home Buyers of Savannah
Can you sell a house with a reverse mortgage? It’s certainly possible. The real estate transaction would require you to meet certain conditions, but you can sell your property at any time, with or without a reverse mortgage.
Home Buyers of Savannah provides cash offers for houses in Rincon, Georgia, and beyond. We specialize in purchasing homes from owners experiencing unique situations, such as reverse mortgage loans and probate issues, sell their homes fast. To request your fair cash offer, call (912) 513-8744.
