Selling a Home with a Reverse Mortgage

Selling a Home with a Reverse Mortgage

Listing a Home Encumbered by a Reverse Mortgage

If you are a real estate agent or heir who is selling a home with a reverse mortgage loan, it is very important for you to know what is owed on the balance of the loan. Each month the loan servicer sends out a mortgage statement to the borrower in the mail that shows the current loan balance. This will help you get an idea of how much will be needed to pay off the reverse mortgage. If you do not have the current mortgage statement that is mailed out to the borrower monthly, you may need to contact the loan servicer to get this payoff amount. In this video, Jeff Foody, Owner of Northwest Reverse Mortgage, Oregon’s leading reverse mortgage brokerage, discusses how a reverse mortgage shows on a title report and how the amount owed can be deceiving to a listing agent.

Reverse mortgages are non-recourse loans so when selling a home with a reverse mortgage if the loan balance is more than the value of the home the servicing company will accept 95% of the appraised value of the home and the remaining 5% goes to the listing agent for their work on selling the home. The mortgage insurance on the HECM reverse mortgage will cover the difference between the home value and the loan payoff amount. This is a feature that is not available on many traditional loans and gives additional protection to the heirs and confirms the listing agent will get paid for their work when the home sells. To learn more about the non-recourse feature, check out our FAQ page here: Reverse Mortgage FAQs

If you have any reverse mortgage questions, we would love to assist. Please call or email us anytime. or 503-427-1667

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Northwest Reverse Mortgage
10121 SE Sunnyside Rd
Ste 300
Clackamas, OR 97015
Phone: (503) 427-1667

Gresham Area

Northwest Reverse Mortgage powered by Amerifund NMLS #347051. Equal Opportunity Mortgage Broker licensed in Oregon, Washington, California, Idaho, Arizona, Texas and Florida. Credit on approval. Terms subject to change without notice. Not a commitment to lend. Contents not provided by, or approved by FHA, HUD or any other government agency. All potential tax benefits should be verified with a professional licensed tax advisor. NMLS Consumer Access

At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; the loan balance grows over time and interest is charged on the outstanding balance; the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; interest on a reverse mortgage is not tax deductible until the borrower makes partial or full re-payment.