How to Sell Your Reverse Mortgage Home
Selling a home on which you have incurred a reverse mortgage is not especially more challenging than doing so without one. A reverse mortgage is a loan made against the home equity of the borrower. Lending institutions allow home equity to be converted to monthly payments, lump sums, a line of credit, or some combination. In order to sell a home with a reverse mortgage on it, you must pay off all obligations incurred on the property first.
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Instructions
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Contact the lending institution with which you have the reverse mortgage agreement. Inform a customer service representative in a letter of your intention to sell the home.
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Terminate your reverse mortgage agreement according to your reverse mortgage contract. You may have to pay a fee for the privilege of doing so. You may pay back the reverse mortgage immediately, or when the home sale completes.
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Market your home for sale, either yourself or with the assistance of a real estate broker. You will not have to disclose that you have a reverse mortgage on the property.
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Sell the home to an interested buyer at an appropriate price. To cover your reverse mortgage costs, you will need to make enough money from the sale to pay back your debts and all interest incurred.
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Repay the reverse mortgage and all additional fees and interest to the lender as soon as possible.
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Tips & Warnings
You may only take out a reverse mortgage on a principal residence. Once you move to another residence, you will need to cancel the reverse mortgage, even if you retain ownership of the property.
