Can I sell my home later if I get a FHA reverse mortgage? Can I sell my home if I don’t have a FHA insured reverse mortgage? Who owns the house when I die?
When you have a reverse mortgage you can sell your home at a later date, generally without penalty. You will, however, need to pay back any money borrowed against the reverse mortgage at the time the sale finalizes. This will include the loaned amount plus any interest or fees that are due on the loan. FHA insured reverse mortgages are just like other reverse mortgages when it comes to the sales clause. The insurance policy is just a guarantee to the lender that the money lent to you will be repaid in full at the event of your death.
Can I sell my home if I don’t have a FHA insured reverse mortgage?
Whether the reverse mortgage you have is insured or not, you as the homeowner have the right to sell your home during the loan period. You will stop receiving payments at the time of the sale and you will need to repay the loan in full. Insured reverse mortgages are only different because they guarantee the lender full repayment at the end of the agreement.
Who owns the house when I die with a reverse mortgage?
When a home has a reverse mortgage lien against it, ownership reverts to the lender until the debt is settled. Children/heirs will be given a period of time where they can repurchase the home from the lender. If the heirs do not wish to do so, the lender will place the home up for sale on the open market. When the sale transpires the lender will keep any amount that is do to them for the loan at that time. If there are any proceeds left over the estate will receive the money.
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