Question about a reverse mortgage
My parents have a reverse mortgage and they plan to sell their home. Will they get the equity if there is extra money made on the sale? Will the lender get the money above the mortgage payoff? TIA! by dgriffith648 from Glendale, California. Aug 8th 2022
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Assuming the Reverse mortgage was obtained in the last twenty years (there may still be some really old ones with different rules), The Reverse mortgage would be handled the same way as a home sale with a traditional mortgage. If your parents sold, the title company handling the sale would obtain the payoff from the lender and pay it off as part of the escrow closing. Your parents would receive the sales price minus the loan payoff, minus their closing costs on the sale. They do not share the equity with anyone, it is theirs. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000 - OR - 480-695-9300.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Yes... Paying off a reverse mortgage is the same as paying off a regular (forward) mortgage on a home. What are they selling if for, missing what the mortgage is, minus any real estate agent fees = Cash in their pocket. I provide home loans in MN, WI, IA ND, and SD. Visit my website at JoeMetzler.com - (651) 552-3681 - Cambria Mortgage, NMLS 274132
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