How Do You Get Out of a Reverse Mortgage? Can You Sell Your House?
Getting out of a reverse mortgage
If you have a reverse mortgage, you can sell your home and repay the loan at any time without penalty. Upon selling the home, the loan must be repaid in full and the borrower can pocket whatever equity is left, assuming that all other loans, liens and associated fees with the sale of the home are paid.
The process for selling your home is generally the same as selling a home with any other loan except you want to obtain in writing the amount owed, including the payments you’ve received to date, interests, lender fees and confirm if any other fees apply. You may want to hire a real estate attorney to ensure that paying the loan in full is handled correctly and your account is closed.
Selling your home is one of the few ways to get out of a reverse mortgage. Other options include taking out a conventional loan to pay the reverse mortgage or paying off the loan in full from your savings.