Forgotten Your Password?

Need to Register?

Question Icon

Short sale possible?

Can I short sale a home that already has a reverse mortgage? I'm trying to short sale it to my neice post probate. by carmena403 from East Woodstock, Connecticut. Jul 22nd 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

The short answer is NO. Reverse mortgages are insured against the loss should the home be given back to the Bank after your death, so the bank does not take a loss and has no interest in taking one just so you can sell it to someone else. Secondly, Lenders will never allow for a short sale involving family. So, what are your options? If you are the one with the reverse mortgage, you can't sell a home post probate, because you are dead, and dead people cannot execute a contract. If you inherited the home and it has a reverse mortgage, you are tasked with a few options. Move into it and pay off the existing RM with your own RM, if you are old enough. Refinance it and keep it (living in it or not). Sell it and pay off the debt in the sale escrow, and if there is not enough equity to cover the closing costs and payoff the mortgage in full, you can dig into your pocket and pay the bank the difference to keep the home, or you give it back. Heirs are never obligated to pay off the entire debt unless they want to keep the home. But no short sale to your niece or anyone else. Sorry. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Jul 23rd 2020
Subscribe to our news feed.