What Is a Reverse Mortgage?
A reverse mortgage allows homeowners aged 62 and older to borrow against their home's equity. Instead of making monthly payments to a lender, the lender pays the homeowner.
The loan is typically repaid when the homeowner moves out, sells the home, or passes away. This arrangement can offer financial relief during retirement, but it also comes with obligations.
When Do You Need to Sell a Home With a Reverse Mortgage?
There are several reasons someone may need to sell a home with a reverse mortgage:
- The homeowner has moved to assisted living.
- The homeowner has passed away, and the heirs are managing the estate.
- The homeowner wants to relocate or downsize.
In each case, the reverse mortgage becomes due, and the home must typically be sold to repay the loan balance.
See What Homeowners in Chicago, Illinois Are Saying
We’ve guided countless homeowners in Chicago, Illinois to sell their homes quickly and hassle-free. See what they had to say about working with Windy City Home Buyer:
Tomas made buying our first home a smooth and stress-free experience. He was knowledgeable, thorough, and down-to-earth—highly recommended!
Rima Paulius
Tomas guided us seamlessly through the process of finding and purchasing our dream home. His communication was top-notch, and we felt confident every step of the way!
Donnamarie Martin
We sold our first home through Windy City, and Tomas was fantastic! He listened to our concerns and made sure the process went smoothly. Highly recommend!
Suza Semilla
Get Your Free Cash Offer Now!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
Step-by-Step: Selling a Home With a Reverse Mortgage
1. Contact the Loan Servicer
Your first step should be to notify the reverse mortgage lender that you plan to sell the home. They will provide a payoff statement that outlines the amount owed.
2. Determine the Home's Value
Hire a local real estate expert or cash buyer like Anya Buys Houses to assess the current value of the property. If you're in a time-sensitive situation, a cash buyer can often provide a quick offer based on the as-is condition of the home.
Related: How to Sell a House in Cook County with a Lien or Title Issue
3. Decide How You Want to Sell
You can list the property on the market or sell it directly to a cash home buyer. The cash sale route is often faster and avoids repair costs, fees, and delays.
Related: Selling a House in Cook County After a Job Loss: What Are Your Options?
4. Sell and Repay the Loan
Once the home sells, the reverse mortgage is paid off using the proceeds. Any remaining equity goes to the homeowner or heirs.
Can You Sell Below the Loan Balance?
Yes. If the loan amount exceeds the home's market value, the Federal Housing Administration (FHA) covers the difference under the Home Equity Conversion Mortgage (HECM) program, as long as the loan is HECM-insured.
This protects both the homeowner and heirs from owing more than the home is worth.
What If the Owner Has Passed Away?
Heirs typically have 6 to 12 months to repay the reverse mortgage, either by selling the home or refinancing it. Acting quickly can prevent foreclosure proceedings and gives more control over the process.
Related: What to Do If You Inherited a House in Cook County With Siblings and Can't Agree
Why a Cash Buyer Might Be the Best Option
Selling to a cash buyer in Cook County can be ideal for families dealing with probate, title issues, or the complexities of reverse mortgages. Here's why:
- No need for repairs or showings
- Faster sales and closings (often in under 30 days)
- Simpler paperwork and less back-and-forth
Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
Sell Your Home in Cook County, Even with a Reverse Mortgage
If you're navigating the sale of a home with a reverse mortgage in Cook County, you're not alone. With the right guidance and support (such as from a cash buyer like Anya Buys Houses) it can be a smooth and stress-free process.
Contact us today by filling out the form.