How do I sell a reverse mortgage home?

You can sell it just like any other property. The reverse mortgage balance is paid off at closing from the sale proceeds. If the home sells for less than what’s owed, special protections may apply depending on the loan type.

Great question, Donna, and one that comes up more than you might think. Here's the general real estate side of it — though I'd strongly recommend looping in a HUD-approved housing counselor and/or a real estate attorney for the financial and legal specifics, as that's outside my lane as a realtor. The basics: A home with a reverse mortgage can absolutely be sold. The sale proceeds are used to pay off the reverse mortgage balance first, and anything left over goes to the homeowner (or the estate, if the homeowner has passed). Key things to know going in: Get a payoff statement first. Contact the reverse mortgage servicer to find out the exact payoff amount. This determines whether there's equity left after the sale. If the home is worth less than the loan balance, a reverse mortgage is a non-recourse loan, meaning the lender can only collect up to the home's value. You wouldn't owe the difference out of pocket. Timeline matters. Reverse mortgages typically give heirs or borrowers a set window (often 6 to 12 months) to sell or settle after a triggering event like the borrower's passing or moving out permanently. The sale process itself is pretty standard once the payoff is confirmed. It lists, markets, and closes like any other home sale. My recommendation: Start by calling your reverse mortgage servicer, then connect with a HUD-approved counselor (free service) and a local real estate attorney. Once those pieces are in place, a realtor can take it from there. Happy to help on the real estate side when you're ready, Donna! Mahalo, Penn Henderson R(S) Big Island Hawaii Real Estate

Hi Donna, You can sell a home with a reverse mortgage in the same way you would sell a traditional home with a mortgage. The most important step is to contact your reverse mortgage company and ask for an official payoff statement. When you have that part lined up find an Realtor local in your area to help guide you through the process. Ask them for a net sheet based on their analysis before you commit to anything and decide if the deal works for you or not.