There's a lot of talk about getting a reverse mortgage, but what about if you already have one and decide that you need to sell your home? It's not nearly as difficult as you might expect to sell a home with a reverse mortgage on. Here are the nine simple steps that you will need to follow in order to do so.
- Know what you owe: With a reverse mortgage, you only owe what you have received to-date. So if you are on monthly payouts or have a line of credit, you can calculate this by contacting your lender to find out what your balanced owed is, which would include fees and interest.
- Check your documents: Make sure you know what interest rate you are being charged and if there are any early payoff fees that would need to be tendered. This can help you better plan for your home's sale.
- Compare debt vs. value of the home: Look at what you owe versus what your home is worth. If you have enough room, it may make sense to sell your home. However, if the value is similar to what you owe, it may not be a possibility.
- Get a payoff quote: You'll have to contact your lender for this. They'll provide a full payoff quote that includes all the funds that need to be tendered to close out the loan. This can be mailed to you so you have it in writing.
- Hire a real estate agent: If you do decide to sell your home, you may be better off using an agent. But you do not have to if you privately list it. Doing so can get your home sold faster. But you can save money by listing the home privately as well.
- Get your home listed: Whether you use an agent or not, you will need to list your home. If selling the home privately, you will have to manage your listings and all advertising. If you are using an agent, they will handle this for you.
- Use a lawyer: You are best served by using a lawyer to conduct the transaction of your home. Even if the law does not require it in your area, this can assure that the contract is beneficial to you and that all goes smoothly during the transaction.
- Attract a buyer: Your agent will take care of this for you. But if you are listing the home privately, you will need to handle getting the buyer in place. Don't forget, the home loan must be paid in full at the time of the sale.
- Sell your home: Once you have made the sale, the lender will receive their payoff. Any funds that are left over will be paid out to you, less any liens or other loans that may exist on your home.
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