Branson Mike allreverse. Erika June 29th, I am purchasing a home where there was a reverse mortgage. We have been held up by waiting for them to generate the payoff information. I asked if there was a deadline and was told that this type of lender is notorious for being slow.
My realtor is asking escrow to hound the reverse mortgage company so that we close by month's end. Why would a company delay on producing a document? Is there a reason to be slow? I was told it takes a handful of people to generate the payoff but I don't understand why they can't be expected to work in a timely matter so we can meet our closing deadline.
Is this common? Is there any way to speed things up or make them accountable? I really do not want this to drag into the next month. Reply to Erika. Hello Erika,. Reply to ARLO. Maria May 10th, In California, do you have to use a real estate agent to handle the loan payoff to a Reverse Mortgage company? Reply to Maria. Hello Maria,. Sandra F. May 10th, My Mom willed the house to me she had a reverse mortgage. I chose to keep the home, but the appraisal expired as I was waiting for probate to appoint me executor it took long because of COVID They are making me get a new appraisal and can't I just reinstate the expired one?
Because now the price of house has been going up, it doesn't seem right. Reply to Sandra. Hello Sandra,. Pamela D. January 25th, Reply to Pamela.
Hello Pamela,. Pamela January 31st, Thank you so much for your thorough response and example. Fortunately, this particular property has quite a bit of equity beyond the balance owed. I can possible refi and pay off the existing Reverse Mortgage. My only puzzle is to season the home for 6 months in order to do so. Hopefully, with the assistance of my attorney, I can do so.
I have learned quite a bit through this process and, since this does have some equity, possibly, I can race the mortgage company to the finish line or work out a plan to repay. Hello Mary,. Lorrie January 25th, Can you remove the appliances when you leave your reverse mortgage and give them the house?
Reply to Lorrie. Hello Lorrie,. Laurie November 17th, How long does a reverse mortgage lender give you to sell your home after the borrower has passed away to pay back loan? Reply to Laurie. Hello Laurie,. Donna August 14th, I have sold my home for more than what is owed. My question is, when does the transaction to the reverse mortgage company take place? At the closing of my home? How are they notified I sold my home and how do I arrange for payment?
Reply to Donna. Hello Donna,. Mary T. January 28th, My 82 yr. The attorney for the buyer is handling the closing. My mother was under the impression that she had to handle the payoff of the reverse mortgage herself, mailing them a cashier's check, and settling with them.
However, the attorney says no, he must mail the check to HUD, under federal law. My question is, is this correct? What guarantees does my mother have that it will be paid, and her obligation satisfied? What should she look for at the closing that proves it will be paid? Reply to Mary. Cindy T. May 19th, What is the procedure for paying back a reverse mortgage by short sale? Reply to Cindy.
Hello Cindy,. Sean March 3rd, Home will have to be sold via short sale. How do I write the letter of request for appraisal to the reverse mortgage lender? Reply to Sean. Hello Sean,. Jimmy L. January 16th, My wife and I have had a non-recourse reverse mortgage on our home for approx. We have found it necessary, for several reasons, to move to another location. We had a real estate to give a comparable estimate on the home value. It was approx. We are looking at giving a "deed in lieu of foreclosure.
Would this damage our credit? Also, a short is being discussed. Which is the best route for us to protect our credit? We would like to get another reverse again in the future. Will HUD allow us to pay back their insurance account later, so we could apply for another reverse mortgage?
Kindly, thanking you for your reply. Reply to Jimmy. Hello Jimmy,. Wayne January 5th, Thanks for all the valuable insight posted here. My dad is He recently fell, and has decided that he needs to move in to an assisted living facility. Reply to Wayne. The lender can only take a Deed in Lieu of Foreclosure once the property is "broom clean" and there are no liens on title other than the reverse mortgage.
If there are any clouds on title such as other liens, the lender has to go through the foreclosure in order to be sure they do not inherit other debts. If there are no liens, make arrangements to be certain the home is free of all personal items and trash, then contact the lender and offer the Deed due to the fact that dad had to move.
Daniel August 12th, Hello - I came across your blog and find it very informative. After searching for answers for my question, I couldn't find any related to my topic. Don't see what you're looking for? Browse related questions What happens if I have a reverse mortgage and I have to move out of my home, such as moving into a nursing home or to live with family? What happens if I have a reverse mortgage and I want to sell my home?
What happens to my reverse mortgage when I die? Search for your question Search for your question. There is quite a bit of paperwork involved, not to mention the financial aspects. And, emotions might be running high with the recent death of a loved one. Deciding what to do with the home can be a tricky situation.
Sell the house and pay back the full balance of the reverse mortgage. Any money you make above that amount is yours to keep. You can do this by taking out a traditional mortgage on your home. Deed the house to the lender.
Allow the lender to foreclose on the home. This should be your last choice, as it will have a negative effect on your credit score. You will have six months to pay off the loan. This may seem like a long time, but interest will keep accruing, so the loan amount will continue to grow. And six months go by fast when you have to get a home inspected, listed, and sold.
You will need to decide what you want to do, quickly. So, can you sell a house with a reverse mortgage? Make sure you are partnered with an experienced Realtor. Primary Menu UpNest. Can you sell a house with a reverse mortgage after the borrower passes away? How do you sell a house that has a reverse mortgage? A reverse mortgage gives eligible homeowners the ability to stay in their homes for as long as possible. Here are our top five tips for selling a HECM-attached property so you can prepare for a smooth and seamless transaction.
Click on a link to navigate to a section below:. Generally speaking, the listing and selling process of a home with a reverse mortgage is comparable to standard residential real estate transactions, but there are certain timelines, special requirements, and unique issues borrowers should take into consideration.
Most importantly, once you sell a house with a reverse mortgage, you will be required to pay back the loan in full with the proceeds from the sale. Reverse mortgage borrowers still retain ownership of their home, but a lender places a lien against the property which entitles them to repayment. Borrowers are not required to make installment payments towards their principal balance until the loan matures and becomes due and payable.
However, if a borrower uses their right to sell the home at any time, they must settle the lien and repay any funds received from the reverse mortgage as part of the process. If the loan has not yet matured, the property must be sold for at least the current appraised value in order to satisfy the mortgage. Once the property is sold, the loan is settled, and the account is closed, the borrower may keep any remaining equity.
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