Can I sell my reverse mortgage home? If I have a reverse mortgage can I rent out my home while I’m away? Can I leave my home as an inheritance?
When you have a reverse mortgage you are allowed to sell your home at any time, unless specifically forbidden in the contract. Most reverse mortgage contracts do not carry a no-sell clause in them. However, you will be required to pay the full amount you have borrowed from your reverse mortgage plus interest and fees when you sell. Borrowers must remember that the reverse mortgage will be paid out of the proceeds of the sale immediately. When you sell your home make sure that you have covered any first mortgage and the reverse mortgage in your sales price.
If I have a reverse mortgage can I rent out my home while I’m away?
Reverse mortgages can only be taken out on a primary residence. A primary residence I defined as the place where the owner of the property resides. Failure to occupy that property for extended lengths of time voids this stipulation. Renting out the property will also void your contract because it will now be considered a commercial property. Commercial properties, vacation or second homes and any other investment property is not eligible for a reverse mortgage contract per law.
Can I leave my home as an inheritance with a reverse mortgage?
When you pass away your estate/heirs will have the option to pay off the reverse mortgage in full and keep the property before it is put up for sale. Most lenders offer the estate approximately 3-6 months to make this decision or make the purchase. The estate will not automatically take possession of the property upon your death. A reverse mortgage contract will need to be paid in full before the lender will release the home. The estate will receive any extra money from the sale of the home once the reverse mortgage is paid if they decide not to purchase it them selves.
Related posts: