What You Should Know Before Selling
a Home with a Reverse Mortgage
You take out a reverse mortgage with the intent of ‘aging in place.’ Millions of Californians do the same thing. It’s more pleasurable to stay in the home you built up equity in and enjoyed with your family than moving into a retirement home or even downsizing. Sometimes, though, staying in your home is too expensive for your retirement budget.
A reverse mortgage can help you stay in your home in San Francisco, California without worrying about how you’ll afford it. But sometimes, selling the house even after getting the reverse mortgage makes more sense.
Here’s what you must know.
Reasons to Sell a House with a Reverse Mortgage
Sometimes life doesn’t go as planned and you find yourself selling your house with a reverse mortgage. Whether it’s the end of an era or you just can’t keep up with the bills, here are the top reasons homeowners with a reverse mortgage sell their homes in San Francisco.
How to Sell your House with a Reverse Mortgage
Since a reverse mortgage operates differently than a traditional mortgage, you’ll take a few extra steps to sell your home with a reverse mortgage in San Francisco, CA.
Don’t list your home for sale until you talk to your lender. You need to know how much you owe on the home. Even if you made payments (not required) throughout the term, you’ll have a balance due based on the amount you withdrew from your equity and the interest accrued.
Your lender can provide you with a payoff of the amount you owe, but it’s only good until the date they make it through. This will give you a good estimate of how much you need to list the home for to make a profit if that’s your intention.
When you sell a home with a reverse mortgage, you want to make sure you get the fair market value for the home, so you have room to pay off the mortgage and make a profit.
You’ll need the guidance of a real estate agent and a professional appraiser. A real estate agent can give you an idea of what you can ask for the home, but a professional appraiser will create an official report that shows the home’s fair market value, which is what buyers’ mortgage companies will use to underwrite their loan.
If you got behind on maintenance or know there are things wrong with the home, consider fixing them before selling the home. You’ll get more money for the home when an inspector can’t find anything wrong with it.
If you defer the maintenance or repairs, it could reflect in your sales price as buyers will either bid a lower price or want a credit at the closing to make up for the costs, they’ll incur to repair the home.
The final step is to close on the sale of your home in San Francisco, CA. The escrow agent will pay off your reverse mortgage, and the remaining funds will cover the other costs of selling a home including transfer taxes, leaving you with the difference (your profit).
What to Watch out for When Selling your Home with a Reverse Mortgage
Selling your home with a reverse mortgage in San Francisco isn’t much different than selling your home with a traditional mortgage, but there are certain factors you should consider.
Selling a House with a Reverse Mortgage in San Francisco is Easy
It’s easy to sell your house with a reverse mortgage, but it does take some careful planning. If you’re thinking about selling your home, talk with a licensed real estate agent. If you haven’t gotten a reverse mortgage yet, but are thinking about it, download my free book at www.reversemortgagelive.com.
This is a short-term offer, so get your copy quickly and see how easy it is to get a reverse mortgage and live off your home’s equity until you decide it’s time to sell.
Have Questions? Just Need More Information? Contact Us Today So We Can Help
Call Now 800-484-9985