A reverse mortgage is a great financial resource for those who want to tap into their home’s equity in retirement. But what do you do if you have a reverse mortgage and you want to sell your house? Is that a possibility? The short answer is yes, and this blog will show you how to do that.
Here’s what you need to sell your house with a reverse mortgage.
Proof of Ownership
You’ll need to provide proof of ownership of your home via a copy of your mortgage or deed of trust. You’ll also need to provide proof of your current property taxes. You can do this by providing a recent property tax bill or statement.
A New Appraisal
A new appraisal will need to be completed before the sale. A professional real estate appraiser will likely charge a fee for this, so you’ll want to ask what that fee is when you schedule the appraisal.
In Good Standing
You have to be in good standing with your reverse mortgage lender. This might require being current on your monthly payments or having paid off a set amount of your loan balance. You can find out what your lender requires by contacting their customer service department.
A Plan for the Sale
You need to have a plan in place for how you’re going to sell your house. That means having a real estate agent lined up if you aren’t selling it for cash or through an off-market sale. You’ll also need to know what sale price you’re looking for. An experienced real estate agent can help with that, as well as provide insight on how to sell your house through an open house or a professional staging and scheduling showings. Just keep in mind that real estate agents don’t work for free. They take a commission out of your final sale price. The typical real estate agent commission is 6%, which is $6000 for every $100,000 that your home sells for.
A Clear Title
Your buyer will want a clear title on the property before they sign off on a sale. This means it has to be free and clear of liens and back taxes. It also needs to sell for a price that will help you pay off the loan balance in full. Selling your home for more than you owe is called a “short sale.” This can significantly affect your ability to get a mortgage in the future.
Proof of Your Reverse Mortgage
You can provide proof of your reverse mortgage with a copy of your mortgage contract or loan agreement. This step is required for both selling your house on the market and when you sell it for cash. You need to prove that you do in fact have a reverse mortgage on your home so that your buyer knows just how much is owed on the house.
Notify Your Lender That You Are Selling Your Home
The final step to sell a house with a reverse mortgage is to notify your lender that you are selling your home. You’ll also want to provide them with a copy of the sales contract. Be aware that in most cases, they will take their outstanding payment from the sale price when the home sells. This means you won’t receive every dollar that you sell your home for at closing.
Sell Your Home to Quick Fix Real Estate Today
Selling your home on the market isn’t only one option for selling it with a reverse mortgage. You can also sell it for cash to a cash buying real estate investor like Quick Fix Real Estate. This can be a great option if you need to sell your house as fast as possible or if you need to access the equity in your home today.
Our process is simple and only has 3 steps. We start with a no-obligation home inspection that will estimate what your home is worth today, as-is. Then we crunch the numbers and make you a real cash offer on the spot. If you accept, we can get the money in your hand as soon as today. All that’s left for you to do is pick the closing date that works best for you. Contact us today to get a cash offer. You have nothing to lose and a whole lot of cash to gain.