Reverse mortgages are not quite the same as traditional ones, and this is especially true when selling a home under a reverse mortgage. It is important to understand that the main difference between traditional and reverse mortgages is that a reverse mortgage is meant to allow the homeowner to continue living in their home while using the home’s value as a liquid asset.
The mortgage company can not make you sell the home in question, but if you want to do so, you are allowed to sell the home yourself. When you sell a home under these circumstances, mortgage insurance should cover the difference if you owe more than the home is worth. If the home is worth more than you owe, you will be able to pocket the difference.
The important thing to note is that by selling the house outright, it is no longer in your possession, and you will not be afforded the same rights under this type of sale as you would be under your reverse mortgage.
Do This to Sell a House With a Reverse Mortgage
If you think selling your house is your best option and you already have a reverse mortgage, here are the steps you will need to take to sell your home successfully.
1. Find Out What You Owe
The first thing you have to do is make sure that you look at the correct numbers. Next, you will need to be in touch with your mortgage company or your lender to find exactly what you owe on the reverse mortgage.
If you are serious about selling your home, it is a good idea to get this in writing. This way, you will have a verifiable record of your pay-off quote.
2. Consult a Real Estate Attorney
If you are dealing with a complex situation or any extenuating circumstances, a real estate attorney will be able to help you through those. They may also help you be able to determine what is a good market rate for your home as well as what you can expect this process to look like.
3. Put Your House on the Market
This will mean using a realtor or traditional listing services. Be careful of selling a home on your own without the help of professionals because you may find yourself caught in a sticky situation because you don’t know all of the laws.
It is also important to understand that there are no guarantees in the traditional market. Keep in mind that you may not get a sale as quickly as you would like, and there is no guarantee you will be able to get your asking price or even sell the house at all.
4. Settle the Balance
Once the home is sold and all of the financing is complete, you will need to pay off the reverse mortgage, and if the sale did not fully provide enough money to do that, your mortgage insurance should cover it. If the house made more than you owe the reverse mortgage, you could then pocket the profit.
Sell Your Reverse Mortgaged Home Today!
If you have decided that you are ready to sell your reverse mortgage home, the best way to sell is by opting for a cash sale because it is the quickest and easiest way to move the process along.
Don’t waste time with traditional listings and showings on top of the hassles of navigating selling with a reverse mortgage. For a quick and seamless cash sale now, contact Handsome Homebuyer today!