Can you short sell a home with a reverse mortgage?

Yes. If the reverse mortgage balance exceeds the home's market value, a HUD-approved short sale may allow the property to be sold for less than the outstanding loan balance.

Who approves a reverse mortgage short sale?

Most HECM reverse mortgages are insured by HUD, so both the loan servicer and HUD guidelines govern the approval process for a short sale.

Can heirs sell a home with a reverse mortgage?

Yes. Heirs can sell the property, refinance the loan, deed the property back to the lender, or pursue a HUD-approved short sale if the mortgage exceeds the home's value.

Can family members purchase a reverse mortgage short sale property?

Depending on HUD guidelines and lender requirements, heirs or family members may be eligible to purchase the property during the reverse mortgage resolution process.

What happens if a reverse mortgage balance is greater than the home's value?

HUD-insured reverse mortgages are generally non-recourse loans, meaning repayment is limited according to program rules. A short sale may allow the home to be sold without requiring payment of the remaining deficiency.

Short Sales Archives ⋆ Page 6 of 11 ⋆ My Florida Home Sale

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