Is it hard to sell a house with a reverse mortgage?

Is it hard to sell a house with a reverse mortgage?

Thinking of selling your house? If you have a reverse mortgage, you might be wondering if it throws a wrench into the process. The good news: you can absolutely sell your home with a reverse mortgage and it’s no different than a regular loan.

Selling a house with a traditional mortgage involves paying off the remaining loan balance at closing. With a reverse mortgage, things work exactly the same.  A payoff is ordered and at closing, proceeds are sent to the bank paying off the reverse mortgage.  Whatever money is left over goes to you, the seller, just like a regular loan payoff.

In the event that home prices have fallen significantly a reverse mortgage offers more protection than a regular loan.  With a regular loan, if you sold your home for less than the loan balance, you or your estate would be responsible for the difference.  With a reverse mortgage in that same situation, your heirs would not be responsible for the difference once all borrowers have passed away.  Your heirs simply can give the bank the home and that’s it.  The bank has no recourse to go after any of your estate’s other assets.  That’s the power and safely of a reverse mortgage.

Selling a home with a reverse mortgage is no different than with a regular loan and offers more protections for your heirs.

To learn more about reverse mortgages and to find out if one is right for you visit https://reganteam.com/reverse-mortgage/ or call 707-508-8473