Yes, you can sell a house with a reverse mortgage in Bucks County, whether you are the homeowner or an heir handling a parent’s estate. The reverse mortgage is paid off at closing out of the sale, and whatever is left over goes to you or the estate. We Buy In Bucks buys these houses as-is for cash, with a written offer within 24 hours and closing in as little as 5 days. Call (267) 751-9256 or request an offer below.
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How a Reverse Mortgage Works When You Sell
Most reverse mortgages are FHA-insured Home Equity Conversion Mortgages, or HECMs. Instead of you making monthly payments, interest and fees are added to the loan balance each month, so the amount owed grows over time. You still own the house, and you are still responsible for property taxes, homeowners insurance and upkeep.
You can sell at any time. When you do, the title company orders a payoff statement from the loan servicer, pays the reverse mortgage off from the sale proceeds, and sends you the rest. Because the balance keeps growing, the payoff figure is often higher than people expect, so it is worth asking the servicer for a current number before you decide anything.
When the Loan Comes Due
A HECM generally becomes due when the last borrower dies, sells the house, or no longer lives there as a primary residence, for example after moving into a care facility for more than 12 months in a row. It can also come due if property taxes or insurance are not paid.
That is when families usually call us. A parent has passed away or moved to assisted living, the servicer has sent a letter, and the house still has decades of belongings in it.
If You Inherited a House With a Reverse Mortgage
According to HUD’s guide for heirs, you should contact the loan servicer right away after the borrower dies. The loan is due at that point, but the servicer may approve 90-day extensions if the estate shows it is actively selling the house or arranging to pay the loan off. Taxes and insurance remain the estate’s responsibility in the meantime.
If the house is worth less than what is owed, HUD rules allow the estate or heirs to sell for at least 95% of the current appraised value, and the lender accepts the net proceeds to satisfy the loan. Heirs who want nothing to do with the house can also give it back to the lender with a deed-in-lieu of foreclosure. If there is a surviving spouse who was not on the loan, separate protections may apply, so tell the servicer about them right away.
In Pennsylvania, someone usually has to be appointed by the Register of Wills before the estate can sign a sale. Our page on selling a probate house in Bucks County explains how that timing works.
How We Help
- Tell us about the house. Call or fill out the form. If you have a letter from the servicer, have it handy so we can see the deadline.
- Get a written cash offer within 24 hours. We look at the house as-is. You do not need to fix anything or clear anything out.
- Close on the servicer’s timeline. We can close in as little as 5 days through a licensed title company, which pays off the reverse mortgage at settlement. Anything left over goes to you or the estate.
Situations We Help With
- A parent has passed away and the servicer has sent a due-and-payable letter
- A homeowner has moved into assisted living or a nursing home
- The loan balance is close to, or more than, what the house is worth
- Property taxes or insurance fell behind and the loan was called due
- Heirs live out of state and cannot manage repairs, cleanout and showings
- An older house that needs too much work to sell on the open market quickly
What You Should Know Before You Sign
- Compare your options. If the house is in good shape and there is real equity, listing it with an agent may leave you or the estate with more money. Our cash offer vs. listing page lays out the trade-offs.
- Talk to the servicer early. Ask for the payoff amount and the deadline in writing.
- Get independent advice. A HUD-approved housing counselor can review a reverse mortgage at no cost, and a Pennsylvania attorney can advise the estate.
We are a home buyer, not a lender or a government agency. We will give you a straight answer and a written offer, and if our offer would not satisfy the loan, we will tell you so.
Frequently Asked Questions
Can I sell my house if I have a reverse mortgage?
Yes. You can sell at any time. The reverse mortgage is paid off at closing from the sale proceeds, and you keep whatever is left after the payoff and closing costs.
What happens to a reverse mortgage when the homeowner dies?
The loan generally becomes due. The heirs or the estate should contact the servicer right away. They can pay the loan off, sell the house, or give it back to the lender, and the servicer may grant 90-day extensions while the house is being sold.
Do the heirs have to pay if the house is worth less than the loan balance?
For an FHA-insured HECM, HUD rules let the estate or heirs sell for at least 95% of the current appraised value, and the lender accepts the net proceeds to satisfy the loan. Confirm the details for your loan with the servicer.
Do I have to clean out the house before selling?
No. We buy as-is. Take what you want to keep, and leave the rest.
This page is general information, not legal or financial advice. Rules can differ by loan type; confirm the details for your loan with the servicer. Source: HUD, Inheriting a Home Secured by an FHA-insured Reverse Mortgage.