In this blog post we’re going to be discussing selling a house with a reverse mortgage in the Appleton, Wisconsin area or any of the surrounding communities. To give a brief overview on what a reverse mortgage actually is, here is the definition: a financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income.
Now that we are familiar with what a reverse mortgage is… What do you need to know as a homeowner when you’re looking to sell a house with a reverse mortgage?
Steps to Sell a House With a Reverse Mortgage
It is possible to sell a house with a reverse mortgage, but in the end it always comes down to the amount of equity you have. Basically the reverse mortgage acts like a normal mortgage. Say you bought a house, you’ve lived there five years and now you’re looking to sell. You have an unpaid balance or a balance that has accrued, that needs to be paid off. The same thing goes for a reverse mortgage. However, the actual concept of the reverse mortgage is a little bit different because you are borrowing against the equity in your house every month.
What Happens When the Equity Is Out?
Depending upon your loan terms, once the equity is out, then it’s due in full, or you can stay in the home until you pass. However, what many people don’t realize is that even if you quit receiving monthly payments from the mortgage company, you still have a property tax bill due at the end of the year. And even though your mortgage company will not take your house back, the county you live in will not have a problem doing that if you quit paying your taxes. Make sure to go over your loan documents in detail prior to signing everything!
Paying Off a Reverse Mortgage When Selling
When you’re going to pay it off, what needs to happen? This is why it is so important to go through a title company in the state of Wisconsin. Here at CB home solutions we use Close and Title Services. They’re in Appleton, Oshkosh, Wautoma, Green Bay. They’ll handle that side of the transaction. To get this process started they will get a loan payoff number from you. Then they’ll contact the mortgage provider. Whether that’s Wells Fargo, Bank of America, US Bank, Etc. The title company will reach out to them and request, “A Mortgage Payoff Statement.” So what is all included in this mortgage payoff statement? It will include the loan balance, & any fees associated with closing the mortgage out. The bank typically tacks on a few hundred dollars for their work on this. The balance that you borrowed against will need to be paid off prior selling.
The House Is Too Much to Handle & I Just Got a Reverse Mortgage
Maybe you got a reverse mortgage two, three years ago, then it’s probably just a fractional amount that is owed. It depends on how much you’re borrowing from it. The nice part is you can pay that amount off, walk away with the equity and move into an apartment or whatever you prefer. If you’re getting towards that time that you want to move into a retirement home, maybe you sell your house, pay the reverse mortgage off, and then use the equity and live on that for the time being.
There are so many different options to selling your house in that particular scenario. Here at CB Home Solutions, the nice part about selling to a company like ours is that we can pay cash for your property. We don’t require you to make any repairs. We don’t inspect it and we buy it as is. We’ll close whenever the timeline permits and we can help you move things if needed or even rent back for the time being.
It’s a simple and easy process and I would love to provide you with a cash offer for your property. Feel free to give us a call on our office line, which is (920) 215-4201 or fill out the form right down below and I will reach out to as soon as I can.