Can I sell my house as is with a reverse mortgage?
If you have a reverse mortgage on your home and are looking to try to sell it, you may worry about how everything in that process works. The biggest question, of course, being can I sell my house as is with a reverse mortgage? With the expert advice from Lucky Home Buyers, realty consultants in Towson, Maryland, we are here to help.
Reverse Mortgage Explained
With a traditional mortgage when buying a home, every payment you make results in gaining equity on that property. With a reverse mortgage, in exchange for incremental payments to you, you give off a small amount of equity in your property.
An important note here is that when you take out a reverse mortgage, your property’s title remains in your name. You are the owner, meaning that you are within your rights to sell your home.
Selling a home with a reverse mortgage is not that unique form selling one with a traditional mortgage. You need to pay the full amount that you owe when you sell the home.
Selling As Is with a Reverse Mortgage
When you make an agreement with your banking servicer on selling your home as is, you need to adhere to that agreement strictly. If the lender feels you aren’t actively trying to sell, but using the agreement as a way to avoid dealing with the cost, you could face foreclosure.
However, if you follow all the conditions of a reverse mortgage, the process of selling your house as is can be trouble free.
Despite taking on a reverse mortgage, you can still sell your home as is, first by listing your home for sale, then telling the loan servicer that date you plan to list your house as is. You will owe the total balance of the reverse mortgage upon selling your house as is or 95% of the appraised value if the debt is more than your home’s value.
About Lucky Home Buyers
At Lucky Home Buyers, we have over 25 years of experience providing win-win solutions to help homeowners get out of their sticky situations. Issues such as foreclosure, owning a burdensome property, probate, or anything else, we focus on providing you with a compassionate solution to your situation so you can continue to do the things you love.