Selling Your California Home with A Reverse Mortgage

There are a few extra things to consider if you want to sell your home and you currently have a reverse mortgage. Just like with any mortgage loan, when you sell your house your reverse mortgage will need to be repaid, including any accrued interest and any applicable fees owed.

A home valuation is always smart but with a reverse mortgage, you will want to get a current home appraisal to best determine the home’s value. This is essential for helping you understand how much of the estimated sale proceeds will need to be used to pay off your Reverse Mortgage and how much you can expect to keep.

Once you’ve determined the current value of your home, it’s time to list it on the market. Once your sale is in process you will want to communicate with your reverse mortgage lender. Let them know your home is under contract and find out the best way to help ensure the process goes smoothly and your loan is paid off in a timely matter after the sale closes.

If your home’s sales price is less than what you owe for your reverse mortgage you will need to look to your loan FHA insurance to cover the extra funds needed to repay your loan.

If you are selling a home with a reverse mortgage and the borrower has passed away you will need to work closely with the Reverse Mortgage lender to coordinate the home sale and loan repayment. It’s important for home sellers to consult with a financial advisor or real estate professional experienced in handling reverse mortgage to fully understand any intricacies involved with selling a home with an active reverse mortgage.

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